Institutional confidence in crypto is rising, with career risk declining under US President Trump, but research has shown that regulation and market liquidity remain critical for firms weighing deeper digital asset exposure.
The perceived career risk for executives entering the crypto space has eased since President Trump’s return to office — but institutional investors still cite regulatory clarity and market liquidity as essential safeguards, according to a research by London-based digital assets manager Nickel Digital Asset Management.
The study, which surveyed institutional investors and wealth managers across the US, UK, Germany, Switzerland, Singapore, Brazil and the UAE, found that 53% believe crypto-related career risk has declined since Trump’s re-election, with 17% saying it has significantly reduced. In contrast, only 1% felt risk had significantly increased, while a third said it had risen to some degree.
Despite growing comfort, regulatory uncertainty remains a sticking point. 83% of respondents said regulatory clarity is either extremely or very important in mitigating career risk tied to digital asset investments. The lack of clear global guidelines remains a top concern for compliance teams and C-suite decisionmakers alike.
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However, the factor investors rated most significant in reducing perceived career risk is improved market liquidity. About 38% cited liquidity as the top factor, ahead of institutional participation (32%), market infrastructure upgrades (17%), and regulatory clarity (13%). The findings suggested that even more than regulation, the ability to enter and exit positions efficiently is key to institutional comfort.
Nearly half (48%) said they expect more trading platforms to launch in the next year, a move seen as likely to bolster institutional adoption. Others expect improved custodial solutions (19%), regulatory developments (24%), and blockchain scalability advancements (10%) to further drive growth.
Anatoly Crachilov, CEO and founding partner at Nickel Digital, said: “There clearly has in the past been a perception around career risk for executives getting involved in the crypto sector. The gradual mainstream adoption of crypto including firms such as BlackRock and Fidelity has been turbo-charged by the Trump presidency and the fear of career risk is receding although many investors in the space still believe there is a stigma. Robust regulation is central to the growth of the sector but there are more practical issues to be addressed including better liquidity and improvements to market infrastructure that will mitigate current counterparty risks.”
