According to a survey by Institutional Asset Manager, more than 80% of institutional investors and asset managers from the US, UK, France, Germany and UAE who are currently under the influence of digital assets, including cryptocurrencies, expect to increase their risk by 2023. . 40% of respondents plan to increase their holdings significantly, while only 1% of people plan to sell all digital assets they own, which can be considered a bullish sign for the asset class.
According to Nickel Digital Asset Management, a leading digital asset investment manager who conducted the survey, most institutional investors with crypto assets are just testing the market, which is why their risk levels are so low. Nearly 60% of respondents said that cryptos and digital assets will continue to grow in the long run and therefore they want to invest more in them.
Just under 38% of respondents said they are holding crypto assets more securely and comfortably thanks to exposure. Roughly the same percentage said they wanted to increase their exposure as more fund managers and companies invested in asset classes. Some cited redevelopment arrangements as the reason for increasing their holdings.
Anatoly Crachilov, co-founder and CEO of Nickel Digital Asset Management, commented on the study and noted:
“We found that a staggering $43.2 billion worth of bitcoin is being held through various Bitcoin closed-end trusts and exchange-traded products. Many of these professional investors with holdings in crypto-assets want to increase their risk.”
More established investors and market-supporting companies cited factors such as strong market performance during the COVID-19 crisis and the improvement of the industry’s infrastructure and regulatory framework as the most important factors explaining this trend, adding that these trends will continue in the coming period.