Institutional investors and wealth managers are increasingly positive on the outlook for digital assets – which includes cryptocurrencies, with many seeing these as a useful hedge against inflation and economic instability in the current climate.
Research found that nine out of 10 of these global investors were positive on digital assets as an asset class, with 13 per cent saying they were ‘very positive’. None of the organisations surveyed were negative on the current market outlook, with 10% saying they were neutral.
The survey was conducted by Nickel Digital Asset Management (Nickel) a digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan. It sought the opinions of investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $1.1 trillion in assets.
The ability to trade 24/7 and the efficiency of the DeFI ecosystem were rated as the two major benefits of investing in the sector, ahead of the prospect of better returns than other asset classes. This was rated third despite recent strong performance.
Capital appreciation and digital assets role as a hedge against currency depreciation were ranked fourth and fifth ahead of yield opportunities and their role as a hedge against inflation. Arbitrage opportunities and low correlation to other asset classes were ranked eighth and ninth.
However the study however found that almost all (94 per cent) agreed that digital assets will serve as a hedge against inflation and economic instability in the next 12 months, with 87 per cent expecting global market capitalisation to grow this year.
Around 35 per cent of those surveyed said they expect the market to exceed $4 trillion compared with the current $3.2 trillion, with 52 per cent predicting the global market cap to vary between the current level and $4 trillion.
Nickel Digital CEO and founding partner Anatoly Crachilov says: “We’re seeing a clear shift from hype to appreciation. Institutional investors increasingly value the structural advantages of digital assets—like 24/7 trading and the efficiency of DeFi—over speculative returns.”
“This signals further maturation of the asset class that is now being recognised for its resilience and utility, particularly in times of increasing economic uncertainty.”
