43% of institutional investors/wealth managers have more positive view of cryptocurrencies

Written by Adam Cadle

18/01/2022

Forty-three per cent of institutional investors and wealth managers say they now have a much more positive view of cryptocurrencies, and 35% have said it has improved slightly.

Research commissioned by Nickel Digital Asset Management interviewing 50 wealth managers and 50 institutional investors across the US, UK, Germany, France, and the UAE, revealed that 78% now have a positive or constructive view of Bitcoin, with only 9% saying their perception of thr cryptocurrency is negative. The corresponding figures for Ethereum are 77% and 7% respectively.

When asked to pick their three main reasons for developing a more positive view of cryptocurrencies since the crisis started, 58% of professional investors cited strong capital growth, and this was followed by 53% who said it is because many crypto and digital assets have shown attractive diversification benefits benefits when compared to mainstream asset classes.

Some 47% of respondents included improving custodial services in their three main reasons for having a more positive view of crypto currencies, and 41% cited growth in market capitalisation and its positive impact on liquidity, among their top three reasons.

Fiona King head of institutional sales Nickel Digital commented: “Many cryptocurrencies have performed well since the Coronavirus crisis started. From 1 January 2020, the value of Bitcoin and Ethereum have increased by 460% and 1812% respectively.

“The crypto and digital markets have also matured a great deal, providing greater custodial services and liquidity for example. There is still much more to be done – especially in the area of regulation – but the market will continue to evolve and grow, and as this happens long-term perceptions of crypto and digital assets will improve even further, and professional investors will increase their allocation to them.”

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