Momentum for investing in digital assets is rapidly building among institutional investors and wealth managers, according to new research from London-based digital assets hedge fund manager Nickel Digital Asset Management.
The study reveals that 80% of institutions already invested in the sector plan to increase their investment in the coming year, reflecting a strong belief in both the short and long term potential of digital assets.
The research, which surveyed institutional investors and wealth managers across the US, UK, Germany, Switzerland, Singapore, Brazil and the UAE, showed that two-thirds (67%) of respondents have already increased their digital asset holdings this year. With these organisations collectively managing around $1.7 trillion in assets, their confidence in the sector is notable, driven by attractive investment opportunities over the next 12 months and the next five years.
98% of respondents view the sector as attractive over the next year, with 32% rating it as “very attractive.” Looking further ahead, 97% believe digital assets will offer compelling investment opportunities over the next five years, with 44% describing them as “very attractive.” This long-term confidence underscores the growing role digital assets are expected to play in institutional portfolios.
70% of institutional investors plan to increase digital asset allocation
The research also highlighted that 83% of respondents have been invested in digital assets for two years or more, while 5% entered the market within the last year. Currently, around 90% of organisations have up to 3% of their assets allocated to digital assets, but this is expected to rise. In fact, 60% estimated that within three years, they will have more than 3% invested in the sector, with 12% predicting that over 5% of their assets will be allocated to digital assets.
Anatoly Crachilov, CEO and founding partner at Nickel Digital, said: “The increasing commitment from institutional investors and wealth managers reflects the growing confidence in this space. At Nickel Digital we are seeing these survey findings validated through a surge of demand for investment solutions aimed at traditional institutional investors and wealth managers. We are expecting Q4 to be one of the busiest yet since the launch of our business five years ago.”
