Survey finds 87% believe ETF growth will boost demand for Crypto active managers and hedge funds

The FINANCIAL — Growing use of crypto ETPs is normalizing digital assets as part of standard portfolio allocations, new global research⁽¹⁾ from London-based Nickel Digital Asset Management (Nickel), Europe’s leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, shows.

Research with more than 200 senior executives at institutional investors and wealth managers found 84% agree expansion in the use of crypto ETPs will normalize digital assets in allocation models within three years with more than a quarter (26%) strongly agreeing with this view.

More than half (55%) questioned say they are very likely to use crypto ETPs for the first time in the next two years either to increase digital asset exposure or invest for the first time. Around a fifth (19%) say they are already using them while 23% say they are quite likely to invest in them. Just 3% said they were unsure or unlikely to use them.

They are confident about expansion of global net flows into digital asset ETFs – more than four out of five (81%) expect net flows to increase over the next 12 months including 19% predicting dramatic increases.

The research across the US, UK, UAE, Germany, Switzerland, France, Italy, the Netherlands, Singapore, Brazil and the Nordics found growth in ETP flows will be good for the digital asset sector as a whole.Around 90% say growth in ETPs has had a positive impact on their organisation’s view of the digital asset sector.