A survey found that 82% of institutional investors expect to increase their exposure to crypto and digital assets by 2023.
The study by Nickel Digital Asset Management surveyed institutional investors and wealth managers from the U.S, U.K., France, Germany and the UAE, Institutional Asset Manager reported. Nickel Digital Asset Management did not say how many institutional investors were surveyed. Additionally, four out of 10 respondents said they would increase their crypto holdings dramatically, with fewer than one in 10 saying they would reduce their exposure.
Among reasons for increasing exposure, 58% cited the long-term capital growth prospects of crypto and digital assets. Over a third of respondents said it was because of either feeling more comfortable with the asset class (38%) or the improving regulatory environment (34%).
A recent example of the latter was a new law in Germany permitting "special funds" – the dominant institutional investment vehicle in the country – to hold up to 20% of their portfolios in crypto. Some estimates suggested as much as $415 billion could flow into the space should every fund allocate their maximum quota to crypto.