19th September 2023

Pensions funds, other institutional investors and wealth managers are more positive towards crypto/digital assets

New global research by London-based Nickel Digital Asset Management(Nickel), Europe’s regulated, award-winning digital assets hedge fund manager, reveals that pension funds, insurance asset managers, family offices and wealth managers are developing a more positive attitude towards digital assets.

More than 9 out of 10(92%) agree digital assets have an important role to play in portfolios. Nickel Digital’s study with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $3.5tr in assets, found 66% believe digital assets role should be moderate in a diversified portfolio.

Nickel’s study found that the growing consensus on using digital assets for diversification is backed by growing optimism about fund launches in the sector. Around 62% questioned expect a recovery digital asset focused fund launches over the next 12 months compared with last year. Almost all(96%), however, believe the backing of a major financial institution is important before they invest with 57% saying it is very important.

Along with fund launches, institutional investors are forecasting growth in the use of tokenisation of investment funds and asset classes. Around 85% predict growth in tokenisation over the next three years with 25% expecting dramatic growth. However, volatility remains the biggest barrier to investing in the crypto and digital assets sector for institutional investors who are sceptical. More than half(51%) who are reluctant to invest cite worries about volatility while 45% have concerns about security and 40% worry they don’t understand the sector. Just a third 34%) are concerned about regulation.

Nickel Digital Trends(19 articles)