Professional investors are increasingly positive on the outlook for digital assets as they increase their understanding of the sector, according to new global research (1) by London-based Nickel Digital Asset Management (Nickel), Europe’s leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan.
The study with institutional investors and wealth managers invested in the sector found 9 out of 10 (90%) are positive on digital assets as an asset class with 13% very positive. No organisations surveyed were negative on the current market with 10% saying they were neutral.
Nickel’s research with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $1.1 trillion in assets found evidence of deeper engagement with the digital asset sector when it comes to benefits.
The ability to trade 24/7 and the efficiency of the DeFI ecosystem were rated as the two major benefits of investing in the sector ahead of the prospect of better returns than other asset classes, which was rated third despite recent strong performance.
Capital appreciation and digital assets role as a hedge against currency depreciation were ranked fourth and fifth ahead of yield opportunities and their role as a hedge against inflation. Arbitrage opportunities and low correlation to other asset classes were ranked eighth and ninth.
The study however found that almost all (94%) agree that digital assets will serve as a hedge against inflation and economic instability in the next 12 months and 87% expect global market capitalization to grow this year. Around 35% expect it to exceed $4 trillion compared with the current $3.2 trillion while
52% expect global market cap to vary between the current level and $4 trillion.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “We’re seeing a clear shift from hype to appreciation. Institutional investors increasingly value the structural advantages of digital assets—like 24/7 trading and the efficiency of DeFi—over speculative returns.”
“This signals further maturation of the asset class that is now being recognised for its resilience and utility, particularly in times of increasing economic uncertainty.”
(1) Nickel Digital commissioned the market research company Pureprofile to interview 200 institutional investors and wealth managers across the US, UK, Germany, Singapore, Switzerland, Brazil and the UAE in January 2025.
