Nickel: Digital assets perceived as having an important role to play in diversification
Nickel: Digital assets perceived as having an important role to play in diversification
New global research by London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning, regulated digital assets hedge fund manager reveals growing mainstream acceptance of digital assets.
Nearly nine out of 10 (87%) of institutional investors and wealth managers questioned believe digital assets have an important role to play in diversified investment portfolios, the research found, with half (50%) saying digital assets should represent a moderate portion of portfolios.
Nickel’s study with institutional investors (pension funds, insurers, family offices) 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 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.