New research with wealth managers across Europe reveals 18 per cent believe clients’ have a very positive outlook on bitcoin, which is driving them to make allocations to the cryptocurrency.
The survey, which was commissioned by Nickel Digital Asset Management (Nickel), the regulated and award-winning investment manager connecting traditional finance with the digital assets market, also shows that 42 per cent of wealth managers are placing an increasing focus on Bitcoin with a view to allowing their investor to allocate to this new asset class.
However, only one in five wealth managers interviewed said they have a good understanding of their clients’ optimal holding structures for Bitcoin and have existing relationships with service providers. One in three (32 per cent) said they are providing execution only investment in Bitcoin to clients.
Anatoly Crachilov, co-Founder and CEO of Nickel Digital, says: “There is little doubt that Bitcoin is increasingly being accepted as an established asset class. The COVID crisis has intensified this adoption, as investors increasingly look to hedge their portfolio against the tale risks of rising inflation and currency debasement.
“Wealth managers need to develop a constructive strategy around Bitcoin to provide their clients with a transparent and secure access to this market.
“Those wealth managers who continue to live in denial and often suggest their clients do not seek an access to these assets, are in for a surprise. The increased mobility of capital suggests the capital is being moved to other crypto-friendly providers in search of implementation and access channels, providing an empirical evidence of growing demand.”
