Nickel Digital : Institutional investors and wealth managers expanding crypto holdings

Institutional investors and wealth managers plan to further expand digital asset investments this year building on increases in the past year, 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

·         Almost all believe long term investment opportunities in crypto are attractive and pension funds are seen as the investor group most likely to dramatically increase investment

·         More than 9 out of 10 expect to have 2% or more of total assets in crypto within 3 years

·         1 in 10 predict Bitcoin could hit $500,000 within two years and 83% expect $500,000 within two to five years

The study with organisations invested in the sector shows professional investors are convinced of the positive long-term outlook for the sector and confident about the prospects for Bitcoin and Ethereum with 1 in 10 believing Bitcoin could hit the $500,000 price landmark within 2 years.

Nearly 9 out of 10 (88%) questioned say they will increase their level of investment in the sector this year building on the 67% who said they increased investment in the sector last year.

Nickel’s research with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $1.1 trillion in assets shows they expect major investor groups to follow suit.

Around 70% predict pension funds will dramatically increase investment in the sector over the next 2 years while 57% believe wealth managers will dramatically increase investment and 40% say the same about family offices. The table below shows almost none expect major investor groups to cut investment levels.

Almost all (98%) institutional investors and wealth managers questioned believe investment opportunities in the sector are attractive on a five-year view while 96% say they are attractive on a 12-month view. Currently around two out of five (43%) have 2% or more of their assets allocated to digital assets but within three years 92% believe they will have 2% or more in digital assets.

They are positive about the outlook for the major cryptocurrencies Bitcoin and Ethereum. All questioned believe Bitcoin will hit $500,000 with 50% believing it will happen within two to three years and 34% within three to five years.

Just 1 in 20 (5%) believe Bitcoin will fall from its current level of around $100,000 by the end of the year with 59% forecasting it will end the year between $100,000 and $125,00 while 36% believe it will exceed $125,000.

Almost all (98%) believe the evolution of Ethereum ETFs will be positive for the currency’s price with 25% saying it will be very positive. Around 93% expect the price to rise from its current level with 37% predicting it could end the year at more than $5,000.

Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said:

“Our latest survey shows that investors are increasingly bullish on digital assets across both the near term and the five-year horizon. Bitcoin reaching $500,000 is no longer seen as an outrageous, far-fetched idea. Institutional investors carefully—but with growing conviction—regard this as a plausible scenario within their strategic investment horizons.

What’s particularly encouraging is that this anticipated growth is not driven by hype, but by a measured and deliberate integration of digital assets into long-term portfolio strategies.”

Source: ETFWorld.co.uk