- A new report shows that asset managers are keen on crypto adoption.
- Nearly a quarter of investment firms have a crypto strategy, with more planning to launch soon.
- The U.S. remains a key target market for institutional investors.
Institutional sentiment toward crypto adoption is promising despite unclear regulatory regimes, market uncertainty, and rampant hacks, scams, and exploits.
According to a 2023 Q3 report dubbed Digital Assets: Managers Fuel Data Infrastructure Needs, on-chain data analytics company Amberdata estimates that 24% of asset management firms in the U.S. and the U.K. have adopted a digital assets strategy.
Crypto as a Growing Business Line
While the crypto industry is still nascent, asset managers demonstrate a bullish sentiment toward more pronounced and direct digital assets use cases, such as investment products, crypto portfolios, and tokenization of traditional financial instruments.
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Amberdata’s report forecasts the digital assets market to grow at a healthy clip, with three-quarters of the surveyed asset managers anticipating 11-20%+ growth in crypto assets under management (AUM) over the next five years.
Impressively, 25% of buy-side asset management firms have a specific digital assets strategy, and an additional 13% intend to launch theirs within the next two years. Further, nearly 24% of these firms have hired a senior executive dedicated to overseeing digital assets adoption, reflecting seriousness about senior management buy-in.
Underscoring the Weight of Ripple’s Victory Against the SEC
Per the report, the U.S. crypto market has demonstrated commendable resilience despite regulatory upheaval, making it more crucial for optimistic digital asset investors who want to see and seize opportunities in their home markets instead of migrating investments to locations like Dubai and Switzerland.
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Notably, the report states that the recent partial win in court by Ripple against the SEC could create a pathway for more assets to be available for trading in the U.S.
Typically, it is expected that some crypto exchanges may leverage some aspects of the ruling to their benefit, such as extending the programmatic sales analysis to argue that the underlying digital assets may not be classified as unregistered securities.
Read more about the inaugural crypto adoption index report:
Inaugural Crypto Adoption Index Names Surprising Country #1
Stay updated on how Bitcoin trading created billionaires:
Bitcoin Trading Made 6 Billionaires – Crypto Wealth Report
