According to a recent survey, about eight out of ten fund managers agree that crypto should be used more widely, particularly because of the diversification benefits it provides in a portfolio.
Nickel Digital Asset Management questioned 200 institutional investors and wealth managers and discovered that the majority believe cryptocurrency will become mainstream.
The Wall Street Journal reported earlier this month that big hedge funds were spending billions of dollars on the sector.“More funds see crypto as a fifth asset class. It’s big enough now,” said Robert Bogucki, crypto investor and co-head of Galaxy Digital.
Chris Tyrer of Fidelity Digital Assets agreed with him, saying: “crypto-native assets such as Bitcoin will play a very prominent role in investment portfolios going forward.”
In the meantime, as the cryptocurrency market recovers from the late-year downturn, money flows continue to be strong. Digital asset investment products have had the greatest inflows so far this year, with $193 million in the last week, according to a CoinShares report.
“To a great extent, digital assets have already achieved escape velocity – they have achieved a multi-trillion dollar market cap, and there is gradual regulatory acceptance of them in key countries,” Nickel Digital CEO Anatoly Crachilov said.
Crachilov went on to say that this is mirrored in the “overwhelming majority of professional investors who believe digital assets will be mainstream.”
According to a PwC report from 2021, 86 percent of crypto-investing hedge funds wanted to invest more money in the asset class in the future.
The rate of future adoption appears to be now determined by rules. President Joe Biden has issued the long-awaited Executive Order. And, to recognise the sector, India introduced a new taxation structure on April 1st. And the billionaire CEO of asset management firm BlackRock anticipates that the Ukraine conflict will hasten global adoption of digital currencies.
The United Arab Emirates is hoping to become a worldwide crypto hub in the Middle East, with Binance, FTX, Bybit, and Crypto.com all establishing new operations in Dubai. According to a recent survey, the majority (67 percent) of UAE citizens are considering cryptocurrencies as an investment within the next five years.