An increasing number of investment firms in the United States, United Kingdom, and Europe are ramping up their digital asset investment strategies by appointing senior executives, according to a recent report by market intelligence firm Amberdata. The report, titled ‘Digital Assets: Managers’ Data Infrastructure Fuel,’ reveals that 24% of asset management firms have already adopted a digital assets strategy, while an additional 13% are planning to do so within the next two years.
The study surveyed 60 investment professionals across the three regions, including asset managers, hedge funds, and other investors. It found that nearly a quarter of these firms now have a senior role dedicated to digital assets implementation, indicating a serious commitment to this emerging investment avenue and strong buy-in from senior management.
Interestingly, 48% of the study participants currently include digital assets in their firm’s portfolio. This suggests that digital asset trading and investment strategies are already gaining traction among asset managers, and Amberdata predicts that this trend will continue to grow over the next two years.
Despite regulatory pressure in the U.S. crypto industry from the United States Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC), the report forecasts a potential positive outcome in the next few years. It notes that “the tide may be turning,” with the SEC and CFTC expected to provide more positive opportunities for investors. This suggests that the regulatory landscape may become more favorable for digital asset investment, which could further encourage asset management firms to adopt digital asset strategies.
The report also highlights Ripple’s recent partial legal victory against the SEC as a potential catalyst for the adoption of digital asset strategies. Ripple’s success may attract more asset management firms to explore digital assets, as it demonstrates a potentially favorable regulatory environment and the viability of this investment avenue.
In line with the growing interest in digital assets, CoinShares, a European digital asset manager, has reported a significant increase in revenue. In the second quarter of 2023, the company generated a total revenue of 20.3 million pounds ($25.9 million), marking a 33% increase compared to the same period in the previous year. This growth further underscores the rising popularity and profitability of digital asset management.
Overall, the findings of this report indicate that investment firms are increasingly recognizing the potential of digital assets and are actively seeking to incorporate them into their investment strategies. With the expected regulatory improvements and favorable legal precedents, the adoption of digital asset strategies is likely to accelerate in the coming years. As asset management firms embrace this new investment avenue, they stand to benefit from the potential growth and profitability offered by the digital asset market.
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