Strong inflows into crypto ETFs are turning up the pressure on regulators to tackle ambiguities in their status, according to new global research by 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.
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Anatoly Crachilov, CEO and Founding Partner at Nickel Digital
· Nearly half strongly agree crypto ETF inflows will force regulators to address ambiguities
· 86% of institutional investors and wealth managers forecast increased inflows over next 12 months
Its survey with institutional investors and wealth managers worldwide found nearly half (46%) believe ongoing inflows into Bitcoin and Ethereum through ETFs will help drive the creation of comprehensive regulatory frameworks worldwide.
A further 54% slightly agree that as a result of crypto ETF adoptions standardized definitions and classifications will be created.
Crypto ETFs raised around $47.2 billion last year (2) despite volatility in cryptocurrency markets and Nickel Digital’s research shows institutional investors and wealth managers expect further growth this year.
Around nine out of out 10 (86%) are forecasting strong inflows this year, the research with executives at pension funds, family offices, insurance asset managers, hedge funds and wealth managers based in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates firms that collectively manage over $14 trillion in assets found.
That includes 17% predicting dramatic increases in inflows with 14% forecasting inflows will be unchanged. No respondents predicted a decline.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “Crypto ETFs have become a key bridge between traditional finance and digital assets, offering institutions a familiar, regulated and liquid entry point into the market.
As adoption continues to accelerate, they are increasing pressure on regulators to provide greater clarity and consistency across the broader digital assets ecosystem. Over time, we expect the standards embedded within ETF structures to help shape more robust and harmonised regulation for the asset class as a whole.”
Source: ETFWorld.co.uk
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