Nickel Digital Asset Management (Nickel) conducted New research and revealed that institutional investors with Bitcoin exposer will increasingly invest in altcoins.
A survey was conducted where Institutional investors and wealth managers from different countries were surveyed who have USD 275.5 billion in assets under management. The survey was done in the US, UK, France, Germany, and the UAE. 32% predict that professional investors with Bitcoin Exposure are willing to invest in altcoins over the next 12 months. 33% said they will energetically increase their investment, while 29% think they will proceed slowly.
They were asked about the reason why professional investors are increasingly focusing on altcoins, 54% answered that it is due to the range of cryptocurrencies in their market cap leading to meaningful thresholds and initiating leadership positions. 45% answered that it is because crypto assets offering attractive diversification benefits from bitcoin, while 44% answered that it is because the upside potential of this market warrants a long-term portfolio allocation.
Co-Founder and CEO of Nickel Digital, Anatoly Crachilov, said:
“Many DeFi protocols have seen their market cap increasing dramatically over the past year, with valuations rising faster than Bitcoin. These assets are addressing real-life use cases and are based on greater programmability than Bitcoin, which is reflected in their price dynamics. It is no surprise therefore that forward-looking institutional investors and wealth managers are increasingly paying attention to this emerging part of the crypto market.”