According to information shared with Finbold, a recent study of institutional investors and financial managers who together manage roughly $108.4 billion in assets revealed that since the Coronavirus epidemic started, “43% say they now have a much more positive view of cryptocurrencies, and 35% say it has improved slightly.” The research commissioned by Nickel Digital Asset Management, a London-based digital asset hedge fund manager founded by senior traders and investment professionals, also revealed that 78% of investors currently have a favorable or constructive view of Bitcoin, with just 9% having a negative one. For Ethereum, the comparable values are 77% and 7%, respectively. Head of Institutional Sales, Nickel Digital Fiona King stated: She added:
58% see strong capital growth in crypto
After being asked to identify their top three major reasons for adopting a more favorable perspective of cryptocurrencies since the pandemic began, 58% of professional investors highlighted significant capital growth, which was followed by 53% who said that numerous crypto and digital assets have shown appealing diversification advantages compared with traditional asset classes. Survey participants also listed better custodial services as one of their top three reasons for becoming more optimistic about cryptocurrencies, while 41% also highlighted market capitalization increase and its favorable influence on liquidity as a factor. The conclusions of the study are based on online interviews with 50 wealth managers and 50 institutional investors from the United States, the United Kingdom, Germany, France, and the United Arab Emirates, which were conducted in November 2021. Ultimately, it appears in accordance with the research, institutional investors and wealth managers’ perceptions of cryptocurrency are shifting, as shown by the fact that since the Coronavirus crisis started the outlook towards digital assets have changed.
