Three in four professional investors (73 per cent) believe that because there are a finite number of bitcoins, the cryptocurrency is a viable asset to hedge against rising inflation.
That’s according to new research from London-based Nickel Digital Asset Management (Nickel), Europe’s largest regulated digital assets hedge fund manager, which was founded by senior traders and investment professionals formerly from major financial institutions including Goldman Sachs and JPMorgan.
The survey of institutional investors and wealth managers, who collectively manage around USD110 billion in assets, reveals that 78 per cent believe this quality of bitcoin will result in an increase of the number of wealth managers and institutional investors allocating to the cryptocurrency.
However, Nickel believes that bitcoin’s inflationary hedging characteristic will take time to become the dominant narrative. Indeed, Bitcoin’s recent volatility, despite the Fed’s hawkish statements, highlights the crypto currency’s correlation to risk assets. Nickel expects this volatility to change over time, as bitcoin evolves from a risk-asset to a store-of-value.
