Study: 82% of institutions will increase the share of cryptocurrencies in portfolios

July 7, 2021


Study 82% of institutions will increase the share of cryptocurrencies in portfolios

82% of institutional investors and private wealth managers plan to increase the share of digital assets in their portfolios by 2023. This was the result of a survey conducted by crypto fund Nickel Digital.

Half of those surveyed expressed a willingness to "significantly" increase their investments.

Only 7% said they would like to reduce this share and 1% said they plan to eliminate such positions altogether.

The sample included entities from the US, France, Germany, the UK and the UAE.

Respondents cited the following as reasons for the improved perception of the sector:

  1. 1
       The long-term prospects of cryptocurrency appreciation - 58% of respondents;
  2. 2
        Increased psychological comfort with the new asset class after familiarising themselves with its principles - 38%;
  3. 3
        increase in the number of companies that have started to venture into the crypto-industry - 37%;
  4. 4
        Reduced legal uncertainty - 34%.

   "Our analysis showed that 19 public companies with a capitalization of more than $1 trillion invested about $6.5 billion in bitcoin. A staggering $43.2 billion is stored in various trusts and exchange-traded products based on digital gold. This trend will continue," commented Nickel Digital CEO Anatoly Krachilov on the results.

Recall that in April a law came into force in Germany, which allowed funds for institutional clients from 1 July to invest up to 20% of assets in cryptocurrencies.

Intertrust analysts had earlier predicted an increase to 7.2% of cryptocurrencies in hedge funds' AUM by 2026 (~$312bn at the time of publication of the study).

According to the latest PwC report, 21% of "classic" hedge funds with $180bn in assets have already raised the share of the new instrument class to an average of 3%. Most of them are planning to increase this volume.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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