Nickel: Cryptocurrencies investment vehicle of institutional investors

Nickel: Cryptocurrencies investment vehicle of institutional investors

13 maart 2024

Bitcoin
bitcoin crypto (2).png

Increased confidence in the performance of cryptocurrencies as an asset class is pointing towards their widespread use as an investment vehicle by institutional investors.

New global research by London-based Nickel Digital Asset Management concludes that confidence in the long-term investment performance of digital assets is driving increased institutional investment in the sector.

Nickel’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 $ 816 billion in assets, found that 63% ranked cryptocurrencies among their top five assets offering the best risk-adjusted returns over the next five years.

That compares with 60% selecting US equities and 55% selecting European investment grade debt while 54% selected European equities among their top five. By contrast just 12% selected gold.

Increased confidence in the performance of cryptocurrencies as an asset class is pointing towards their widespread use as an investment vehicle by institutional investors, the research found. Around two out of five (37%) believe that will happen within five years while another 41% believe it will happen within seven years.

The shift towards increased exposure to cryptocurrency and digital assets is highlighted by the research among institutional investors who already have some exposure to the asset class. Currently, only a quarter (25%) have 1.5% or more of their assets allocated to the digital asset sector.

Within three years nearly 9 out of 10 (88%) estimate they will have 2% or more of their assets allocated to the sector. Around 30% estimate it will be 3% or more.

Gerelateerde berichten