Nearly nine out of 10 institutional investors and wealth managers recognise digital assets’ role in diversified portfolios with half believing they should represent a moderate portion of portfolios, according to a survey led by London-based digital assets hedge fund manager Nickel Digital Asset Management.
The survey by Nickel, which was founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, reveals overall growing mainstream acceptance of digital assets.
Nickel surveyed institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the UAE who collectively manage around $816bn in AUM, finding that 23% believe digital assets should only represent a small part of portfolios while 16% say they should form a significant part of portfolios.
Around 10% questioned said digital assets should only be included in diversified investment portfolios for specific investment strategies.
The acceptance of the role of digital assets in diversified investment portfolios shows how institutional investor and wealth manager views are changing and that is reflected in forecasts of the launch of new digital asset funds.
Nearly two out of three (63%) questioned expect a rise in the number of new funds focusing on digital assets and cryptocurrencies over the next 12 months with 24% forecasting a dramatic increase. Just 6% expect a slight decrease in the number of funds in the next 12 months.
In a press statement, Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “The recent strong performance of digital assets highlights the role they can play in diversified investment portfolios, underlining the renewed interest in the asset class from institutional investors and wealth managers.
“We have no doubt that the SEC’s approval of spot bitcoin ETFs has played a role in the acceptance of digital assets as the barriers of inclusion have been dramatically lowered.”
