UK institutional investors anticipate uplift in crypto holdings
A new study from London-based Nickel Digital Asset Management (Nickel), Europe’s largest regulated and award-winning digital assets hedge fund manager shows professional investors in the UK expect more crypto/digital investment funds to launch as regulation of the sector improves (please see the attached press release).
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Nickel commissioned research with professional investors in the UK who collectively manage around $71.73 billion in assets, and over the next three years 93% expect a rise in the number of funds available with nearly a quarter (23%) predicting a dramatic increase.
The investors, who work for institutional investors, wealth managers, fund managers and hedge funds, are optimistic about the crypto regulatory framework over the next two years with 97% expecting an improvement including 33% who expect it to become significantly more constructive.
Part of the reason for improvements in regulation will be down to the fear of missing out - 93% say the positive attitude to regulation taken by Germany and the UAE will influence other countries to follow suit. However, 90% worry that Germany and the UAE will take a huge leap ahead due to their attitude to regulation.
As well as a rise in the number of crypto/digital investment funds being launched UK investors believe institutional allocations to crypto will rise - more than half (53%) predict pension funds and other institutions will increase allocations.
Increased allocations and investment will increase the pressure on wealth managers from high-net-worth clients to advise on crypto according to 83% of investors while 97% believe wealth managers will lose business if they do not. Almost all (93%) believe the level of advice and education pension fund trustees want will increase.
Nickel’s research found strong support for digital assets among UK investors - all investors questioned believe they will become mainstream assets while 93% believe that digital assets - in particular DeFi protocols - are emerging as an important disruptive technology for traditional finance.
When asked for their main overarching view on blockchain and digital asset technology, 63% of professional investors said it is scalable and, on the way, to achieving mainstream adoption, while 17% said it bears strong transformative potential for the global economy.