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More than 80% of institutional investors questioned who have previously invested in digital assets anticipate increasing their exposure.
According to a new study, hedge fund executives, wealth managers, and institutional investors who already own crypto assets want to grow their holdings.
According to the study, which was done by the London-based crypto fund Nickel Digital Asset Management, 82% of the 100 investors and wealth managers questioned anticipate to grow their exposure to digital assets between now and 2023.
The study, conducted online in May and June, polled 50 wealth managers and institutional investors with past exposure to crypto assets from the United States, United Kingdom, France, Germany, and the United Arab Emirates.
Four out of ten respondents, or 40%, indicated that they expect to “dramatically increase their holdings,” while just 7% intend to cut their exposure and 1% intend to sell their whole assets.
Nickel did, however, remark that most institutional investors with crypto holdings have extremely modest levels of exposure since “many have just been testing the market to see how it works.”
According to the poll, the major reason provided for investing more in digital assets by 58 percent of respondents is the long-term capital development potential. Despite the big market downturn, BTC has gained 18% so far this year, while Ethereum has gained a staggering 215 percent since January 1.
Around 38% of those polled stated that having some exposure to crypto assets increased their trust in the asset class, while 37% highlighted more prominent corporations and fund managers engaging in crypto assets as a motivation to invest more.
Anatoly Crachilov, co-founder and CEO of Nickel Digital, stated that confidence in the asset class is growing and that he expects the trend to continue, adding:
“Our analysis at the start of June this year revealed that 19 listed companies with a market cap of over $1 trillion had around $6.5 billion invested in Bitcoin, having originally spent $4.3 billion buying the cryptocurrency.”
As previously reported, a poll performed by U.K. investing firm AJ Bell’s indicated that over the last year, more individuals purchased crypto assets than stock-related savings products.
According to a MasterCard poll conducted in May, four out of ten individuals want to use cryptocurrencies for payment within the next year.