The firm commissioned the market research company Pureprofile to interview 50 wealth managers and 50 institutional investors across the US, UK, France, Germany, and the UAE. The survey was conducted online in May and June 2021. As per findings shared with Finbold.com, four out of ten say they will dramatically increase their holdings. Only 1% said they would sell their entire holdings, and just 7% said they would reduce their exposure. However, Nickel says in most cases institutional investors with holdings in Bitcoin and other cryptocurrencies have very low levels of exposure as many have just been testing to market to see how it works. The main reason given for investing more in digital assets is the long-term capital growth prospects of cryptocurrencies and digital assets – the view cited by 58% of respondents. This is followed by 38% who said it is because having some exposure to crypto assets means they have become more comfortable and confident in holding the asset class. Some 37% cited more leading corporates and fund managers investing in crypto assets because this too is giving them more confidence, and 34% said an improving regulatory environment was also a key factor in increasing their allocation. Anatoly Crachilov, co-Founder and CEO of Nickel Digital, commented: Additionally, Mr. Crachilov expressed that “many of those professional investors with holdings in crypto assets 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.” [binance]
