New global research (1) by London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning, regulated digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, shows institutional investors and wealth managers are increasingly positive on the impact of the next Bitcoin halving.
Sign up to our free newsletters
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital
· institutional investors and wealth managers are positive on next halving expected in April
· More than three out of four are aware that The Merge means Ethereum is now deflationary
The next Bitcoin halving – expected in April when the number of blocks reaches 840,000 – is aimed at maintaining the currency’s scarcity and value by cutting the number of new Bitcoins issued and will be the fourth in its history.
Nickel’s study with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $815.5 billion in assets found 81% expect the halving to be positive for Bitcoin’s price. Around 25% believe it will be very positive.
Around seven out of 10 (69%) questioned believe the halving will increase investment levels in Bitcoin with 18% expecting a dramatic increase. Just 2% believe the halving will reduce investment in the currency.
Nickel’s study also looked at wider knowledge among institutional investors and wealth managers on the technicalities of cryptocurrencies asking how many were aware that Ethereum’s upgrade – known as The Merge – last year means the asset is now deflationary by roughly 1% with more being removed from supply than created. Around 78% questioned said they were aware with 16% admitting they were not and 6% not expressing a view.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “The implications and causality linked to the halving of Bitcoin’s inflation rate—a phenomenon occurring every four years—are subjects of intense debate within the financial community. Yet, one aspect remains undisputed: the halving effect, governed by an algorithmic protocol, starkly contrasts with the habitual expansion of monetary supply by central banks, which often leads to financial systems plagued by inflationary pressures.
The programmable reduction in the inflation rate, executed not through vague policy directives but through predetermined code, underscores a fundamental shift towards more predictable and controlled appreciation of the asset’s value. Consequently, the Bitcoin halving transcends its technical boundaries, enhancing the appeal of this asset and fostering integration of digital assets into the global financial ecosystem.”
(1) Nickel Digital commissioned the market research company Pureprofile to interview 200 institutional investors and wealth managers across the US, UK, Germany, Singapore, Switzerland, Brazil and the UAE in January 2024.
Source: ETFWorld.co.uk
Subscribe to Our Newsletter
