Nearly Half of Asset Managers Are Bullish on Digital Assets, According to Survey

Nearly half of asset managers are currently managing digital assets for their clients, despite the ongoing crypto bear market. This survey reveals their bullish sentiment towards digital assets and their expectation of continued growth in the industry.

Posted 7 months ago in Blockchain


Image: A group of professionals discussing digital assets and investments

Of 60 institutions surveyed in the U.S., Europe, and the U.K., an astounding 48% reported currently managing digital assets for their clients. This bullish sentiment towards digital assets comes despite the ongoing crypto bear market.

The survey, conducted by crypto data provider Amberdata and global financial services analyst Coalition Greenwich, assessed asset managers including hedge funds, venture capital firms, and family offices. The findings revealed that nearly half of the asset managers currently have digital assets under management (AUM).

The figures for AUM vary among these entities, with the majority holding between $1-10 million. Additionally, 19% of asset managers reported holding between $11-50 million in crypto for their clients, while only one institution operates with over $1 billion in digital assets.

Despite the bullish sentiment, there are still concerns within the industry. For the 52% of institutions not involved in crypto, regulatory environment and challenges, such as lack of common KYC/AML technology, unclear regulations, complex digital assets, security practices, and blockchain performance issues pose as roadblocks.

However, the survey also highlighted the growing interest in specialized crypto services. One in four institutions currently have a dedicated role focused on digital assets, with a projected 13% growth in the next twelve months. This demonstrates the prioritization of crypto products and services in the industry.

Despite recent events, such as the FTX outage, most asset managers expect centralized exchanges to continue growing over the next five years.

Last updated 9/9/2023, 3:36:09 AM

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