New Telegraph

Report: Institutional investors, others to increase Bitcoin exposure

Most institutional investors and wealth managers who currently invest in Bitcoin plan to increase their exposure over the next two years, with the main reason being anticipated increase in valuations, Reuters reported at the weekend, citing survey conducted by Nickel Digital Asset Management.


The firms said its survey showed that 85 per cent of institutional investors and wealth managers who already invest in cryptocurrency plan to increase their exposure, while 72 per cent expect professional investors in general to increase their exposure or invest for the first time.


Of those surveyed, 56 per cent said they anticipated increase in valuation over the next two years, while 21 per cent expect the valuation to rise dramatically in 2021. However, 56 per cent think there will a slight rise in valuation this year.


Two out of five or 40 per cent of those surveyed also want to increase their exposure as their ability to provide a tail hedge against excess monetary supply and currency debasement, as well as a hedge against inflation.


Anatoly Cracholiv, co-founder and CEO of Nickel Digital, a London-based digital investment firm, said there is growing optimism about the sector’s infrastructure improving, which will result in mainstream investors entering the market.


According to him, “however, there will be continued large swings in valuations, and this is an expected behaviour for the new technology in the early stage of its adoption curve. The price action for such assets is never meant to be a straight line.

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