Almost two thirds (62 per cent) of institutional investors and wealth managers from the US, UK, France, Germany, and the UAE expect to invest in cryptoassets for the first time within the next 12 months.
According to a new survey from Nickel Digital Asset Management, 47 per cent of these institutions are attracted to the long-term capital growth prospects of cryptocurrencies and digital assets.
Meanwhile, 44 per cent said they have more confidence in this sector because so many corporates and fund managers are now investing in cryptocurrencies.
41 per cent said they were interested in making their first crypto investments because the regulatory environment is improving, while one in three (34 per cent) said it is because it is a good hedge against inflation.
“There is no doubt that the cryptoassets market is becoming more mainstream in the institutional and wealth management sectors,” said Henry Howell, head of business development at Nickel Digital.
“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.”