Nickel: Institutional investors boost crypto allocations amid growing digital asset adoption

Despite the previous year’s volatility, more than nine out of 10 institutional investors and wealth managers still plan to increase holdings in crypto and digital assets in the year ahead, according to new global research by London-based Nickel Digital Asset Management (Nickel).

Nickel, Europe’s leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan said the study found that 91% of firms plan to increase investments in the sector over the next 12 months, with more than one in eight (13%) planning to dramatically increase their holdings, underlining growing confidence.

The research with professional investors in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates found the planned expansion builds on strong growth in the previous year.

Nickel’s research with executives at pension funds, insurance asset managers, family offices, hedge funds and wealth managers, who collectively manage over $14 trillion in assets, found that nearly six out of 10 (59%) increased their level of investment in crypto and digital assets in the past 12 months, including 12% who dramatically boosted investment levels.

More than a quarter (26%) of respondents said they cut investment in the sector over the past 12 months, while 7% sold all their holdings. A further 5% said their investment level was unchanged during the period.

Anatoly Crachilov, CEO and founding partner at Nickel Digital, said: “Digital assets are getting increasingly embedded within institutional portfolios. The toolkit has expanded significantly, allowing allocations to be calibrated with far greater precision in line with risk appetite and portfolio objectives. Investors can access the asset class across a wide spectrum of implementations, ranging from low-volatility, delta-neutral and arbitrage strategies designed to generate uncorrelated returns, through to directional strategies and full beta exposure via ETFs.”

Re-disseminated by Wealth and Society