Institutional investors and wealth managers predict boom in digital asset allocations 

More than nine out of 10 institutional investors and wealth managers (92%) say that digital asset adoption is now a strategic priority for their organisation, with 58% saying it is an urgent and immediate priority, according to new global research  from Brava Finance, the non-custodial stablecoin management platform.

More than four fifths (83%) have increased their digital assets allocations over the past 12 months. One third (35%) have increased it by up to 5% while 44% have upped their allocation by between 5% and 10%. 

Bitcoin’s strong long-term performance despite recent volatility has increased the priority say 94% of investors and more than a quarter (27%) say it has triggered a serious, strategic reappraisal of policy, the study in the US, UK, UAE, EU, Brazil, Singapore, South Korea, Switzerland and Hong Kong found.

The research found almost all institutional investors and wealth managers (95%) either already have (29%) or are developing a digital asset strategy and allocations are expected to increase over the next 12 months. 

Almost half (46%) will increase their allocations to digital assets by between 5% and 10%,  while more than a third (37%) expect to make increases of between 10% to 25%.

Improved risk adjusted returns is the primary motivator for starting a digital asset strategy today, say 59% of investors surveyed, closely followed by the fear of being left behind by those who have already implemented strategies (56%). Two other key factors are the search for diversified sources of yield (40%) and pressure from clients or trustees (40%).

Brava Finance, whose platform helps users access stablecoin-based credit strategies through decentralised finance (DeFi), has launched  its Stablecoin SMA and first credit fund, whichoffers institutional-grade access via a regulated Cayman vehicle. The fund employs leading custody solutions such as Fireblocks and Northern Trust. 

Graham Cooke, CEO and founder at Brava Finance, said: “The research proves what we have known for some time – that institutional investors and wealth managers around the world have identified digital assets as a credible alternative for delivering diversification and risk adjusted returns.

“We anticipate considerable growth over the coming years as institutions become more open about using digital assets to meet their clients’ funding objectives.” 

Brava Finance’s first fund is a Cayman-regulated credit fund designed to offer secure, professional access to crypto markets without the volatility. It is built entirely on Brava’s on-chain stablecoin credit & risk infrastructure.

It targets 8% to 12% annual returns, offers good liquidity, is fully diversified and institutionally structured with no directional exposure to Bitcoin or other volatile assets.

Returns are powered by 100s of established blockchain-based collateralised lending markets—similar to Lombard loans in traditional finance. Crypto holders such as Bitcoin owners deposit their assets into smart contracts and borrow stablecoins against them, paying interest. If their loan-to-value ratio becomes risky, the system automatically and orderly liquidates collateral—eliminating default risk.

Re-disseminated by Wealth and Society