A new study (1) reveals over half (53 per cent) of professional investors believe that over the next two years, institutional investors will look to dramatically increase the level of diversification in their portfolios, and a further 40 per cent think there will be a slightly greater focus on this.
Nickel Digital Asset Management (Nickel), a European investment manager dedicated to the digital assets market, commissioned research with institutional investors and wealth managers from the US, UK, France, Germany, and the UAE who collectively have USD275.5 billion in assets under management.
As part of their plans to diversify, the majority of respondents expect institutional investors to increase their exposure to alternative asset classes over the next two years.
Some 42 per cent of professional investors surveyed said they expect institutional investors to ‘dramatically’ increase their exposure to cryptocurrencies between now and 2023. This can partly be explained by the fact that many institutional investors are still testing the cryptoassets/digital market and either have very small holdings here, or none at all.
Fiona King, Head of Institutional Sales at Nickel Digital, says: “The digitisation of the investment management sector has revolutionised the market in terms of the transparency around different asset classes and the investment strategies that can be developed. This, coupled with developments around alternative asset classes such as cryptoassets, means the opportunities to diversify portfolios have never been greater.”
Nickel currently has four funds investing in the digital asset space.