Institutional investors and wealth managers to invest in crypto assets

By Joy Dumasia

Nickel Digital Asset Management (Nickel), Europe’s regulated investment manager dedicated to the digital assets market, published a new survey of institutional investors and wealth managers from the US, UK, France, Germany, and the UAE. They collectively don’t currently have exposure to cryptocurrencies and digital assets, which reveals that 62% expect to invest in these for the first time within the next year.

The main reason for investing in digital assets for the first time in the long term capital growth prospects of cryptocurrencies and digital assets, the view cited by 47% of respondents. One in three (34%) said it is because it is a good hedge against inflation. This is followed by 44% who said it is because more corporates and fund managers are investing in cryptocurrencies, which gives them greater confidence in the asset class, and 41% who said it is because the regulatory environment is improving.

Nickel Digital Asset Management is a London based FCA authorised and regulated investment manager that offers a range of digital asset strategy solutions for institutional investors. Its mission is to connect traditional investors to the digital assets market across a broad range of risk profiles. 

Henry Howell, Head of Business Development of Nickel Digital, said: “There is no doubt that the cryptoassets market is becoming more mainstream in the institutional and wealth management sectors. This is being driven by several factors, including strong market performance during the Covid crisis, more established investors and corporations endorsing the market, and the sector’s infrastructure and regulatory framework improving. As these trends continue to evolve, this will fuel further growth in the market from professional and sophisticated investors.”

Recently, IBS Intelligence reported that London-based Nickel Digital Asset Management, Europe’s largest regulated and award-winning digital assets hedge fund manager founded by senior traders and investment professionals formerly from major financial institutions including Goldman Sachs and JPMorgan, has announced plans to make the US one of its top priority markets, as new research reveals the potential for strong growth in the country.