Most Institutional Investors Expect to Increase Crypto Exposure by 2023: Study

Four out of 10 respondents said they plan to increase their crypto holdings dramatically.

Jul 6, 2021 at 11:19 a.m. UTC
Updated Sep 14, 2021 at 1:21 p.m. UTC

A survey found that 82% of institutional investors expect to increase their exposure to crypto and digital assets by 2023.

  • The study by Nickel Digital Asset Management surveyed institutional investors and wealth managers from the U.S, U.K., France, Germany and the UAE, Institutional Asset Manager reported.
  • Nickel Digital Asset Management did not say how many institutional investors were surveyed.
  • Additionally, four out of 10 respondents said they would increase their crypto holdings dramatically, with fewer than one in 10 saying they would reduce their exposure.
  • Among reasons for increasing exposure, 58% cited the long-term capital growth prospects of crypto and digital assets. Over a third of respondents said it was because of either feeling more comfortable with the asset class (38%) or the improving regulatory environment (34%).
  • A recent example of the latter was a new law in Germany permitting "special funds" – the dominant institutional investment vehicle in the country – to hold up to 20% of their portfolios in crypto. Some estimates suggested as much as $415 billion could flow into the space should every fund allocate their maximum quota to crypto.
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