Institutional investors and wealth managers have signalled their concern about the threat of inflation, with many predicting that it will rise higher than official forecasts.
Out of 100 institutions and wealth managers surveyed by Nickel Digital Asset Management, 55% said they were “very concerned” about inflation, while 36% were “quite concerned”.
Moreover, 43% believed inflation in the US would be higher than what authorities have predicted over the next two years, while only 2% believed predictions that inflation would be lower.
However, just over half did believe official predictions to be correct.
In the UK, 41% of the professional investors canvassed also believed inflation would be higher than official predictions.
Anatoly Crachilov, chief executive of Nickel Digital Asset Management, said: “Our research shows professional investors are very concerned about the growing threat of inflation, and many fear authorities have underestimated the scale of this problem.”
Respondents to the survey – 50 institutions and 50 wealth managers with a combined $275.5 billion in assets under management – were located in the US, UK, France, Germany, and the UAE.
Nearly half of respondents said they expected institutional investors to invest in cryptocurrencies for the first time to hedge the threat of inflation, while 45% said those with allocations to crypto will increase them.
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