92% of Asset Managers Expect More Digital Asset Funds from Traditional Firms – Survey
Institutional investors and wealth managers predict a
surge in the launch of new digital asset funds within the coming year.
They expect this trend to substantially transform the
sector amid growing interest among traditional institutions.
According to a study by Nickel Digital Asset
Management, the growing trend indicates that established financial players are
preparing to take a larger stake in the digital finance ecosystem, led by the
success of tokenized funds like BlackRock’s BUIDL.
Potential Surge in Crypto Fund
The majority of institutional investors and wealth
managers also anticipate a surge in new digital asset funds within the coming
year. The research found that 70% of respondents expect an increase in the
launch of digital asset-focused funds compared to the previous year. Among them, 14% predict this growth will be dramatic,
highlighting the rapid momentum in the space.
The study reportedly surveyed financial institutions
across the US, UK, Germany, Switzerland, Singapore, Brazil, and the United Arab
Emirates, managing a combined $1.7 trillion in assets.
Commenting about the findings, Anatoly Crachilov, the
CEO and Founding Partner at Nickel Digital, said: “As the digital asset sector
evolves and new funds come to market, it’s clear that institutional investors
are driving this expansion.”
“At Nickel Digital, we welcome this development and
continue to cater to growing allocators’ interest by offering low-volatility,
risk-controlled investment solutions, leveraging our five-year audited track
record in the digital assets space.”
Nearly 93% of those surveyed believe that more
traditional firms will enter the digital asset sector in the next three years,
with 38% anticipating a dramatic increase. The study highlighted that the
recent success of BlackRock’s tokenized BUIDL fund is a key driver behind this
trend.
Paving the Way for Tokenized Investments
Launched on the Ethereum network in March, BlackRock’s
BUIDL fund reportedly holds an estimated $500 million in assets under
management (AUM), but almost all respondents (95%) expect BUIDL to grow to $10
billion by the end of 2025.
The BUIDL fund holds short-term US Treasuries, which
helps mitigate counterparty risk while allowing investors to earn a yield
linked to the US dollar. This structure has made BUIDL particularly appealing
to institutional investors looking for a stable yet profitable asset class.
Interest in tokenized funds goes beyond mere
curiosity. The study found that 5% of institutional investors are already
invested in tokenized funds, with an additional 13% planning to invest within
the next year.
This article was written by Jared Kirui at www.financemagnates.com.