Institutional Investors Turning Bullish on Crypto: Survey Suggests

A new survey from Nickel Digital Asset Management (Nickel), a European investment manager dedicated to the cryptocurrency industry, has highlighted the increasing bullish stance of institutional investors in the ecosystem. 

Drivers of Institutional Investors’ Bullish Stance

Per the survey featuring institutional investors and wealth managers who have no prior exposure to crypto, across the United States, UK, Germany, France, and the United Arab Emirates, it was discovered that about 62% of those surveyed confirmed their readiness to commit funds into the nascent ecosystem in the coming year.

The underlying drive to invest in crypto differentiates amongst the surveyed money managers, with 47% aiming to invest in the industry because digital assets can give good long-term capital growth prospects. While some 44% of the respondents acknowledged that their decision is hinged on the fact that other hedge funds and corporate bodies are investing in the ecosystem, a group of 41% of the survey participants said their decisions will be backed by the fact that regulations governing digital assets are gradually improving.

“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 of 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.” 

Investing Through Regulator’s Support

With the growing popularity of cryptocurrencies in the past years, many institutional investors, particularly those concerned about the thin regulations governing the space, began demanding crypto-backed investment vehicles like Bitcoin ETFs. Many market regulators have heeded to this clamour with a number of crypto-backed ETF products that have made their way into economies, including Canada, Germany, Brazil, and Switzerland, amongst others.