Approximately 8 out of 10 wealth managers and institutional investors from the US, France, Germany, the UAE, and the UK said they would enhance their crypto exposure between now and 2023. 40% of them plan to “dramatically increase their holdings.”
A recent survey conducted by a European investment manager dedicated to cryptocurrencies – Nickel Digital Asset Management (Nickel) – revealed that more than 80% of the asked investors expect to increase their virtual asset exposure in the next 2 years.
40% of them, based in the fast-growing economies such as the US, the UK, the UAE, France, and Germany, intend to invest considerable amounts in the crypto market.
The research showed that a mere 1% of the wealth managers and institutional investors would sell their entire digital assets position, while 7% believe they should reduce their exposure.
Nickel Digital Asset Management revealed that the main reason why the participants would invest more in cryptocurrencies is their long-term capital growth prospect – an explanation supported by 58% of the respondents. In addition, 38% claimed they became more confident in the asset class after investing in it, while 37% would allocate funds into the market if they see such an example from a giant corporation.
Anatoly Crachilov – co-Founder and CEO of Nickel Digital – opined that the COVID-19 crisis is one of the main reasons for the increased crypto appetite by institutional investors:
“Many of those professional investors with holdings in cryptoassets are looking to increase their exposure and this is being driven by several factors including strong market performance during the Covid-19 crisis, more established investors and corporations endorsing the market, and the sector’s infrastructure and regulatory framework improving. These trends will continue to expand.”
Another recent survey conducted by the company Spectrum Group indicated that rich millennials with over $1 million in their portfolio are among the biggest believers in digital assets.
The results showed that nearly half of the participants had invested at least 25% of their wealth in the crypto market, while 30% have allocated 50% or more of their assets in virtual currencies.
The president of Spectrum Group – George Walper – explained why the younger generations find the market so attractive:
“The younger investors jumped on it early when it was not as well know. They were more intellectually engaged with the idea even though it was new.”