Institutional investors are gearing up to bolster their investments in cryptocurrencies over the coming year, buoyed by a shifting perception towards the sector’s potential for both short and long-term gains, reveals recent global research conducted by London-based Nickel Digital Asset Management.
Commissioned by Nickel Digital, the study, conducted by Pureprofile, delved into the sentiments of 200 institutional investors and wealth managers, shedding light on their evolving attitudes and investment strategies within the digital asset landscape.
Anatoly Crachilov, CEO and founding partner of Nickel Digital, highlighted the evolving landscape, noting, “The robust performance of the sector, coupled with the Securities and Exchange Commission’s approval of spot Bitcoin ETFs, was anticipated to augment optimism within the sector, but the number of respondents intending to elevate their investments in crypto is still remarkable.”
The research unveils a notable shift in sentiment compared to previous years, with a significant proportion of institutional players signaling their intent to ramp up crypto allocations. Three-quarters (74%) of surveyed investors and wealth managers with exposure to digital assets expressed plans to increase their investments this year, with an intriguing 13% eyeing a “dramatic” surge in allocations.
This bullish outlook marks a departure from previous trends, wherein only half of respondents increased their crypto investments in the preceding year, while a substantial portion (38%) reduced or liquidated their holdings.
The study attributes this shift to the robust performance of digital assets over the past year, with leading cryptocurrencies witnessing substantial gains. A staggering 87% of respondents deemed current investment opportunities in the sector attractive, with 20% characterizing them as highly enticing.
Looking ahead, optimism prevails in the long term, with 92% of respondents viewing investment opportunities in the sector favorably over the next five years. Notably, sovereign wealth funds and pension funds emerged as frontrunners in the race to expand crypto exposure, although all sectors signaled a propensity to bolster investment levels.
As institutional interest in cryptocurrencies continues to gather momentum, propelled by evolving regulatory landscapes and growing acceptance of digital assets, the stage is set for a significant influx of capital into the crypto market, heralding a new chapter in the realm of wealth management.