Study reveals changing perception of cryptocurrencies amongst institutional investors and wealth managers

A new study of institutional investors and wealth managers, who collectively manage around $108.4 billion in assets, reveals that since the Coronavirus crisis started, 43 percent say they now have a much more positive view of cryptocurrencies, and 35 percent say it has improved slightly. 

The research, which was commissioned by London-based Nickel Digital Asset Management (Nickel), Europe’s largest regulated and award-winning digital assets hedge fund manager founded by senior traders and investment professionals formerly from major financial institutions including Goldman Sachs and JPMorgan, reveals 78 percent now have a positive or constructive view of Bitcoin, with only 9 percent saying their perception of the cryptocurrency is negative. The corresponding figures for Ethereum are 77 percent and 7 percent, respectively.

When asked to pick their three main reasons for developing a more positive view of cryptocurrencies since the crisis started, 58 percent of professional investors cited strong capital growth, and this was followed by 53 percent who said it is because many crypto and digital assets have shown attractive diversification benefits when compared to mainstream asset classes. Some 47 percent of respondents included improving custodial services in their three main reasons for having a more positive view of cryptocurrencies, and 41 percent cited growth in market capitalization and its positive impact on liquidity, among their top three reasons.

(WBJ)