Institutional investors rank digital assets among top return opportunities

Two-thirds of institutional investors and wealth managers place crypto among the five asset classes with the strongest risk-adjusted return potential over the next five years.

Institutional investors and wealth managers are increasingly confident in the ability of cryptocurrency as an asset class to deliver strong risk-adjusted returns, new global research from London-based Nickel Digital Asset Management (Nickel), Europe’s leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, shows.

The study with institutional investors and wealth managers found more than two out of three (67%) rated crypto among their top five asset classes offering the biggest opportunities for risk-adjusted returns over the next five years.

Crypto received more support than private equity, which was chosen by 64%, with both asset classes well ahead of US equities chosen by 50% and European equities selected by 44%. Around 35% chose commodities.

Despite volatile markets since the start of 2026, sentiment overall remains seemingly unchanged as the research confirms an earlier study in January this year showing 65% choosing crypto and 61% private equity, showing that. US equities in January only received 43% while European equities were chosen by 53%.

The new study across the US, UK, UAE, Germany, Switzerland, France, Italy, the Netherlands, Singapore, Brazil and the Nordics underlines the confidence with all major investor groups expected to increase investment in crypto and digital assets over the next two years.

Nearly two out of five (36%) expect pension funds to significantly increase investment into digital assets in the next two years, while 33% expect wealth managers to do the same. Around 32% expect sovereign wealth funds to significantly increase investment with 31% and 30% predicting the same for family offices and hedge funds respectively.

Anatoly Crachilov, CEO and founding partner at Nickel Digital, said: “The research underlines how digital assets are becoming an integral part of institutional portfolio allocations. The long-term confidence in the asset class’s ability to deliver long-term, superior risk-adjusted returns compared with other major asset classes highlights how the focus on digital assets has moved towards strategic allocations.”

Re-disseminated by Wealth and Society