A recent study shows that despite the intense scrutiny and uncertainty faced by the US market, the cryptocurrency markets in the United States and Europe remain very strong and are making significant progress.
Asset managers and hedge funds are increasingly optimistic and enthusiastic about the growing potential in the cryptocurrency asset class, according to research conducted by Coalition Greenwich and Amberdata.
Not only are they enthusiastic about the growth prospects, but they are also actively exploring and exploiting the diverse business opportunities offered by this sector.
In this dynamic environment, these financial professionals see the cryptocurrency asset class as fertile ground for portfolio expansion and diversification. They are not just spectators; rather, they are actively positioning themselves to capitalize on the cryptocurrency’s growth trajectory.
Source: Coalition Greenwich
Cryptocurrency adoption continues to rise
Research conducted by Coalition Greenwich, a globally recognized leader in strategic benchmarking, analysis and insights for the financial services industry, in partnership with renowned blockchain and crypto asset data company Amberdata, reveals an important trend: Their findings indicate that a substantial 48% of assets Regulators are proactively regulating cryptocurrency assets on behalf of clients.
Surprisingly, these institutions maintain a positive outlook on cryptocurrencies even in the face of generally bearish market sentiment.
The study, titled “Digital Assets: Managers drive data infrastructure needs,” aims to examine how these institutions are incorporating digital asset services into their offerings, including client interactions, investment products and related technologies, to meet client needs.
Bitcoin still below the $26K level on the weekly chart: TradingView.com
Research shows that 24% of asset managers have already implemented a digital asset strategy, and another 13% intend to implement it within the next two years.
The data also shows that 60 companies across three jurisdictions were surveyed, and 25% of them currently have digital asset management companies and related teams. This proportion is expected to increase by a third over the next 12 months as more companies express interest in expanding capacity in this area.
More countries explore digital assets
Meanwhile, the cryptocurrency market remains strong, with support from centers in Dubai, Singapore, Switzerland, the United States, and the United Kingdom. Financial institutions are exploring asset tokenization, and well-regulated custody infrastructure is critical.
The competitive landscape is shifting towards data, analytics and tools for front-office professionals looking for higher returns. The research found that investment in crypto data and portfolio management is expected to increase over the next 6-12 months, indicating that the industry is ready for future opportunities.
Among institutions that do not offer cryptocurrency services, 52% attribute their stance to regulatory challenges. The entities pointed to various factors such as the unique characteristics of cryptocurrencies, ambiguous tax regulations, security concerns, and issues related to know-your-customer (KYC) compliance.
Asset managers expect the overall market to grow over the next five years, a view consistent with previous observations by digital asset executives. On the regulatory front, 85% of institutional respondents believe the SEC will change its strict approach and create more favorable opportunities in the coming years, the study shows.
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