Institutional investors maintain a robust interest in crypto despite the prevailing sideways market. A survey by Nickel Digital Asset Management reveals that the recent price action has not deterred these investors.
The study, encompassing institutional investors and wealth managers from countries such as the United States, United Kingdom, Germany, Switzerland, Singapore, Brazil, and the United Arab Emirates, discovered that an overwhelming 92% of respondents consider crypto vital for diversified portfolios.
Institutional Investors Are Bullish on Crypto
The majority of respondents, who collectively oversee about $3.5 trillion in assets, recommend a moderate investment approach toward crypto. The research also portrays a promising horizon for the crypto industry.
Indeed, 62% of those surveyed anticipate a spike in crypto-focused fund launches in the coming year. Furthermore, 85% foresee the growth of tokenization in investment funds and asset classes over the subsequent three years, with a quarter predicting significant expansion in this segment.
While the sentiment remains optimistic, 96% of respondents underline the need for endorsement from major financial institutions. For 57% of them, such support is crucial before delving into crypto investments.
Read more: Crypto vs. Stocks: Where To Invest Your Money in 2023
Yet, alongside the fervor, institutional investors pinpoint several obstacles in accessing the crypto market. Over 50% voice apprehensions about market volatility. Meanwhile, 45% flag security concerns, and 40% confess their limited understanding. Regulatory uncertainties also persist, echoed by 34% of those surveyed.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, shared insights on the survey’s results.
“Institutional investors are increasingly recognizing the benefits of including digital assets in their portfolios for diversification purposes. While opinions vary, the general sentiment leans towards a moderate role for di
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Author: Josh Adams