• According to a survey, 74% of UK hedge fund managers intend to increase their crypto exposure

  • According to a new survey, a large proportion of hedge funds in the United Kingdom plan to grow their cryptocurrency exposure in the next two years. Nickel Digital, a crypto fund manager based in Europe, commissioned the study.

    According to the report, 74 percent of UK hedge fund managers intend to expand their crypto investments between now and 2023.

    Six more of the 23 respondents, who represent elite fund managers with a combined $66.5 billion in assets under management (AUM), stated they will “dramatically” boost their crypto investments over the next two years.

    A Major Driving Factor Is Capital Appreciation

    When asked why they decided to increase their exposure, a large percentage of respondents cited the possibility of generating huge profits from their crypto holdings as a primary motivator.

    Increased regulatory certainty, according to the minority, is reinforcing their faith in the crypto industry’s potential and pushing them to become more involved in the field.

    Anatoly Crachilov, CEO and founding partner of Nickel Digital, said in a statement,

    “Despite the recent market correction, our study reveals that there is an ever-increasing desire for this asset class among professional investors willing to take a bullish longer-term view on this asset class.”

    In recent months, the firm’s Bitcoin Fund has managed to stay afloat despite unfavorable market conditions. Despite bitcoin’s big price drop, the Fund gained over 12% in the first half of 2021.

    According to a poll conducted by the Financial Conduct Authority (FCA) in June, the number of crypto holders in the UK has increased dramatically.

    Institutional adoption is hampered by a lack of liquidity.

    While noting the crypto industry’s amazing growth, the respondents did not hold back in revealing some of the challenges to mainstream institutional adoption. The profusion of crypto projects with small market values, according to the report, creates a liquidity problem and a lack of transparency, causing large institutional investors to reconsider their investment plans.

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