Institutional investors and asset managers are predicting a surge in digital asset fund launches, with 70% of those surveyed expecting an increase in the next 12 months, according to new research from Nickel Digital Asset Management. 92% of respondents also expect traditional financial institutions to enter the space with their own capital, in part due to Blackrockâs successful BUIDL fund. Industry leaders predict this trend will change the landscape for digital assets.
Research shows surge in interest in digital asset funds driven by institutional investors
Nickel Digital Asset Management released its research on Thursday, detailing that institutional investors and asset managers anticipate a significant increase in the launch of digital asset funds. According to the research:
Research with institutional investors in the digital asset space found that around 70% of respondents anticipate an increase in digital asset-focused fund launches in the next 12 months compared to the past 12 months, with one in seven (14%) forecasting strong growth.
Additionally, 92% of respondents expect traditional financial institutions to enter the space by launching their own funds.
The research highlights that the growth trend will coincide with increased involvement from traditional financial institutions. âThe surge in fund launches will be accompanied by increased participation in digital assets by traditional financial institutions, according to Nickelâs research with institutional investors and asset managers in the United States, United Kingdom, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates, who together manage approximately $1.7 trillion in assets.â
A key factor influencing this increase is the success of BlackRockâs BUIDL fund. âA whopping 93% of respondents believe that the number of traditional firms launching funds in this space will increase over the next three years, with 38% predicting a sharp increase.â BlackRockâs BUIDL fund, which launched on the Ethereum network in March, has already reached $500 million in assets under management (AUM). Respondents predict that it will grow significantly, with 95% predicting it will reach $10 billion by 2025.
Anatoly Crachilov, CEO of Nickel Digital, commented:
As the digital asset space grows and new funds come to market, it is clear that institutional investors are driving this expansion.
What do you think about the growing trend of digital asset funds and traditional financial institutions getting involved in this space? Let us know in the comments below.
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