Market findings suggest that more than 80% of institutional investors, who have already invested in digital assets, are ready to maximize their exposure in the crypto space.
The new survey found that wealth managers, hedge funds executives, and institutional investors who already hold crypto assets prefer to increase their holdings.
According to Nickel Digital, a London-based digital asset management firm, 82% of the investors and wealth managers polled expect to increase their exposure to digital assets between now and 2023.
The London firm conducted the exercise online between May and June. The survey featured 50 wealth managers and 50 institutional investors from different parts of the world, including France, Germany, the U.S., the U.K., and the UAE.
These polls found that 40 % of the participants will “dramatically increase their holdings,” with just 7% stating that they intend to reduce their exposure and 1% planning to sell their entire holdings.
Nonetheless, the Nickel survey has noted that in most instances, institutional investors with crypto holdings have a low level of exposure as
“many have just been testing to market to see how it works.”
The new survey further revealed that the primary reason for investing more digital assets was the long-term growth prospects, according to 58% of the respondents. Indeed, despite the recent massive market slump, Bitcoin has managed to gain 18% so far this year, with Ethereum surging 215% since January 1.
Interestingly, 38% of those polled confirmed that they have some exposure to crypto assets, with 37% citing that more leading corporate and fund manager investing in crypto assets have attracted their reasons to invest more.
While commenting on the survey results, Anatoly Crachilov, Co-founder and CEO of Nickel Digital, stated that the confidence in the asset class is increasing, and he expects the trend to continue, adding:
“Our analysis at the start of June this year revealed that 19 listed companies with a market cap of over $1 trillion had around $6.5 billion invested in Bitcoin, having originally spent $4.3 billion buying the cryptocurrency.”
Last month, a similar survey conducted by U.K investment firm AJ Bell revealed that more people bought crypto assets than stock-related savings products over the past year.
A MasterCard survey conducted in May revealed four in ten planned to use cryptocurrency for payments within the year.