Institutional investors and wealth managers now rank cryptocurrency among the top five asset classes for risk-adjusted returns, surpassing US equities and nearing private equity. According to research by Nickel Digital Asset Management, crypto is seen as a hedge against inflation and offers superior returns compared to other asset classes.
The study, which surveyed investors from the US, UK, Germany, and several other countries managing around $1.7 trillion, revealed that 35% believe crypto will be a part of most institutional portfolios within three years. Around 66% see crypto as offering strong risk-adjusted returns, just behind private equity at 69% and ahead of US equities at 58%.
Growing confidence in digital assets is reflected in the belief that institutional investors, including pension and sovereign wealth funds, will increase their crypto allocations over the next two years.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “Many institutional investors and wealth managers very much endorse the case for crypto as an asset class and its potential for delivering strong risk-adjusted returns by leveraging non-directional strategies.
“That is reflected in the expectations of increased investment in the sector by institutional investors and wealth managers, albeit from low levels.”
