Although digital assets have attracted a wide adoption from traders, institutional investors and wealth managers are still skeptical about the technology.
One of the main concerns for institutional investors is crypto security and price volatility. In recent years, regulatory uncertainty grew and was in fact a contributor to the high increase in digital tokens’ volatility, according to a report commissioned by Nickel Digital Asset Management that was first reported by Bloomberg.
After an interview with 50 wealth managers and 50 institutional investors from the United States, Germany, France, the United Arab Emirates, and The United Kingdom — who are managing a collective sum of $108.4 billion in assets, here are the top four concerns:
- 79% cited asset security as the main consideration
- 67% expressed a level of price apprehension in volatile price swings
- 56% said it was the market capitalization
- 49% said it was the regulatory uncertainty
“Our research shows that institutional investors have correctly identified custody and security as a critical differentiator to this unique asset class,” said Henry Howell, head of business development at Nickel Digital.
