According to new research by Nickel Digital Asset Management, institutional investors and wealth managers will increasingly invest in cryptocurrencies.
Nickel, Europe’s largest regulated digital assets hedge fund manager, has performed a significant poll of institutional investors and wealth managers, confirming the rising interest in cryptocurrencies.
Nickel discovered numerous noteworthy assertions from this survey, including the fact that one-third of respondents (33%) believe it will greatly enhance allocation to this class of cryptocurrencies (altcoins).
Another significant conclusion was that 32% of these institutional investors believe that individuals who have invested in Bitcoin will be redirected to altcoins in the next year.
When asked why they focus more on altcoins, 54 percent of respondents highlighted that the spectrum of cryptocurrencies has seen their market cap reach relevant thresholds and establish leadership positions as the key reason.
Another group, accounting for 45 percent of all applications, claimed they chose crypto assets because they offer excellent diversification benefits over bitcoin. The final group (44%) justified this by claiming that the altcoin market’s upside potential warranted a long-term portfolio allocation.
Many DeFi protocols have seen their market cap increase rapidly over the last year, with valuations climbing faster than Bitcoin, according to Anatoly Crachilov, co-Founder and CEO of Nickel Digitalany. These assets address real-world use cases and are more programmable than Bitcoin, as evidenced by their price movements. As a result, it’s no wonder that forward-thinking institutional investors and wealth managers are devoting growing attention to this emerging segment of the crypto market.
The study included institutional investors and wealth managers from the United States, the United Kingdom, France, Germany, and the United Arab Emirates, who collectively oversee $275.5 billion in assets.