Depressed Crypto Markets, Regulatory Risks Fail to Dissuade Asset Managers From Investing

The hazy regulatory situation and depressed crypto markets are doing small to curb plus managers' involvement successful integer assets, according to study released Wednesday by Coalition Greenwich, a portion of India-based recognition standing institution Crisil, and Amberdata, a crypto information provider.

Almost fractional the 60 buy-side professionals from U.S. and European-based plus managers and hedge funds surveyed betwixt May and June are actively managing integer assets, according to the report, Digital Assets: Managers Fuel Data Infrastructure Needs.

Most of the managers spot the integer assets manufacture increasing successful the adjacent 5 years successful presumption of assets nether management, with implicit 40% estimating a compound yearly maturation complaint of astatine slightest 11%, and astir a 5th forecasting 20% oregon more.

A 4th of the firms already person a circumstantial integer assets strategy, and different 13% are looking to unveil 1 implicit the adjacent 2 years.

Overall, plus managers are optimistic astir the maturation opportunities successful the integer assets manufacture and commercialized opportunities to connection products similar exchange-traded funds (ETFs) and tokenized securities.

Asset managers stay optimistic astir the U.S. arsenic a crypto destination and expect American regulators to yet supply a prudent regulatory model for the industry. That's surprising, the study said, considering the Securities and Exchange Commission's (SEC) enforcement actions against starring crypto exchanges Binance and Coinbase.

Perhaps arsenic astonishing is that astir managers expect centralized exchanges to turn implicit the adjacent 5 years. Since the illness of Sam Bankman-Fried's crypto speech FTX successful November past year, investors person progressively preferred to instrumentality nonstop custody of their coins, choosing to clasp them disconnected centralized exchanges.

The study besides said the manufacture is inactive evolving, and managers are bullish connected the astir evident usage cases similar crypto portfolios, concern products, and tokenization of fiscal instruments.