Four out of Five Institutional Investors Expect to Increase Their Crypto Exposure Over the Next Two Years
Two out of five are increasing their holdings dramatically
Crypto exposure is about to expand — or at least that’s what 82 percent of institutional investors and wealth managers believe. More and more people are eager to expose their investments to the crypto market because of the technology and the new opportunities.
Between now and 2023, investors from the US, France, Germany, the UK, and the UAE are planning to increase their holdings — with 40% saying that they will do so “dramatically.”
Hopes & Dreams in the Crypto Market
Cryptocurrencies are new and exciting. With various virtual currencies hitting the news, such as Bitcoin and Dogecoin, investors want to explore the possibilities. Nickel Digit Asset Management conducted a survey among investors to find out their thoughts on virtual asset exposure. Over the next two years, 80% plan on increasing their investments in the crypto markets.
One of the top reasons for investing in such markets is the long-term growth that is promised. Over 50% of investors are excited about the prospects. Further, people have claimed that they are gaining confidence in this asset class — and that many will allocate funds into the crypto market if they see a giant corporation doing so.
Cryptocurrencies are becoming more mainstream. People are embracing it as a form of currency — and new coins are coming online all the time. As more corporations endorse the market as an acceptable investment stream, it will lead to more confidence and more exposure.
A New Generation of Investors
Digital assets are unique. As such, it’s creating interest among a new generation of investors — including millennial millionaires. A survey conducted by the Spectrum Group identified that some of the biggest investors in the crypto market are the wealthy millennials with portfolios of $1 million +.
Approximately 50% of this demographic had crypto encompassing at least 25% of their portfolio. Meanwhile, at least 30% had dedicated at least half of their portfolio to it.
There’s a good reason why the younger generations find the market so alluring, according to George Walper, the Spectrum Group’s president. They were “intellectually engaged” with the idea, even before cryptocurrencies became mainstream.
With such exciting opportunities and with more people learning about crypto markets every day, it’s only natural to see more market exposure in the next several years.
