The study with pension funds, insurers, family offices, wealth managers and hedge funds invested in the sector, found 43% believe there will be a dramatic increase in traditional financial firms launching crypto funds and investment solutions over the next two years. A further 53% believe there will be a slight increase. Nearly three out of four (73%) of the institutional investors and wealth managers questioned expect a rise in digital asset fund launches in general this year with just 2% predicting a decline.

Increasing involvement by traditional institutions is good news for the sector - nearly one in five (18%) say the involvement of major firms is very positive for their involvement in the sector while 74% say it's quite positive.

Nickel's research in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates with organisations who collectively manage around $1.1 trillion in assets, found they believe crypto will be one of their top five asset classes for risk-adjusted returns over the next five years as the table below outlines. Private equity was the next most selected followed by emerging market equities.

The research found 75% believe crypto will become part of portfolio allocation by institutional investors within five years.

Companies questioned say actively managed diversified long-only portfolios are the most favoured way to access the digital asset space, followed by actively managed diversified long-short portfolios with passive diversified portfolios the third choice. Arbitrage-focused hedge funds were ranked fourth ahead of ETFs and ETPs.

Increasing involvement by traditional institutions is good news for the sector - nearly one in five (18%) say the involvement of major firms is very positive for their involvement in the sector while 74% say it's quite positive.

Nickel's research in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates with organisations who collectively manage around $1.1 trillion in assets, found they believe crypto will be one of their top five asset classes for risk-adjusted returns over the next five years as the table below outlines. Private equity was the next most selected followed by emerging market equities.

The research found 75% believe crypto will become part of portfolio allocation by institutional investors within five years.

Companies questioned say actively managed diversified long-only portfolios are the most favoured way to access the digital asset space, followed by actively managed diversified long-short portfolios with passive diversified portfolios the third choice. Arbitrage-focused hedge funds were ranked fourth ahead of ETFs and ETPs.