UAE INVESTORS FOCUS ON CRYPTO PORTFOLIO ROLE AS CONFIDENCE GROWS

10/11/2023 9:46:54 AM

(MENAFN- Perceptiona) Institutional investors in the United Arab Emirates are increasingly confident in the outlook for digital assets and believe they should play a significant role in diversified portfolios, according to new global research (1) by London-based Nickel Digital Asset Management (Nickel), FCA-authorised and award-winning digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan.
Its study found that 66% of institutional investors and wealth managers in the UAE believe investment opportunities in the sector are very attractive on a 12-month view with 27% saying they are quite attractive. That confidence is translating into an increasing recognition of the importance of digital assets as a diversifier in well-designed investment portfolios.
The study with institutional investors and wealth managers in the United Arab Emirates who collectively manage around $936 billion in assets, found growing confidence in regulators is supporting investment. Around 60% believe regulators are very committed to introducing robust regulation while a further 33% believe they are quite committed.
The optimism is feeding through into longer-term support for Bitcoin growth – 80% believe Bitcoin will hit the landmark $100,000 valuation with 40% predicting the price will be achieved within five years.
Nickel’s study was conducted when Bitcoin was around $30,000 and Ethereum around $1,900. No investors questioned believe either Bitcoin’s or Ethereum’s price will end the year below these levels.
However, volatility remains the biggest barrier to investing in the digital assets sector for institutional investors who are sceptical. More than half (57%) who are reluctant to invest cite worries about volatility while 47% have concerns about regulatory uncertainty and understanding of the sector. Just a third (33%) are concerned about security.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital said: “Institutional investors and wealth managers in the UAE are increasingly confident about the short-term and long-term direction of the crypto and digital assets sector and that is translating into a recognition of the diversification benefits offered by digital assets in portfolio construction.”

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