A new study reveals that institutional investors and wealth managers are predicting a quite big rise in digital asset fund launches.
Nickel Digital Asset Management shared that 70% of those surveyed expect this increase within the next year, while 92% foresee traditional financial institutions entering the market with their own funds.
Growing interest in digital assets
Nickel Digital Asset Management released its findings on Thursday, showing that many institutional investors believe there will be a visible uptick in digital asset-focused fund launches.
The research shows that around 70% of respondents predict more digital asset funds will be launched in the coming year compared to the previous year, with 14% expecting pretty dramatic growth.
This survey included organizations already invested in the digital assets sector.
International playing field
Traditional financial institutions are likely to become more involved in this area. The study included responses from institutional investors and wealth managers across various countries, including the U.S., U.K., Germany, Switzerland, Singapore, Brazil, and the United Arab Emirates.
Together, these organizations manage approximately $1.7 trillion in assets. CEO of Nickel Digital, Anatoly Crachilov stated that as the digital asset sector develops and new funds are introduced, it is clear that institutional investors are leading this growth.
BlackRock’s success isn’t invisible
A key reason for this expected surge is the success of BlackRock’s BUIDL fund.
The research shows that up to 93% of respondents believe that the number of traditional firms launching funds in the digital asset sector will increase over the next three years, with 38% predicting a big rise.
BlackRock’s BUIDL fund, which launched on the Ethereum network in March, has already reached $500 million in assets under management.
Many respondents anticipate that this fund will continue to grow, with 95% predicting it could reach $10 billion by 2025.
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