AI Central To Increasing Digital Asset Allocations

(MENAFN- Investor Ideas) ) a trusted platform for investing ideas including AI and robotics stocks issues market commentary from Nickel Digital Asset Management.

The adoption of AI and machine learning tools is central to increasing digital asset allocations with risk management tools the major focus, new global research from London-based Nickel Digital Asset Management, Europe's leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, shows.

Nearly four out of five (78%) of institutional investors and wealth managers believe AI tools will be critical or very important in their organisation's decision to increase digital asset allocations over the next two years, the study with more than 200 senior executives found.

The availability of AI-led risk management tools from institutional-grade managers is key to increasing allocations, the research found, with 78% questioned saying they are likely to increase digital asset exposure over the next 12 to 24 months as a result.

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Around three out of four (75%) organisations which already invest in digital assets said they would increase their allocations by more than 25% if AI risk tools could be proven to materially improve drawdown control and oversight.

Pressure to adopt AI-enabled risk management will build, the research found. Within five years 90% agree that institutional digital asset managers will need comprehensive AI-enabled risk management to be considered credible, the study across the US, UK, UAE, Germany, Switzerland, France, Italy, the Netherlands, Singapore, Brazil and the Nordics found.

Institutional investors and wealth managers say AI-enabled portfolio construction and position-sizing tools are marginally most likely to increase their investment committee's confidence in digital assets with 40% selecting them ahead of 39% choosing automated compliance and regulatory reporting.

Around 36% chose real-time risk monitoring across exchanges, custodians and wallets as most likely to appeal to investment committees while the same number highlighted liquidity and slippage forecasting.

The research found there are still concerns about using AI in digital asset investment processes - around a quarter (25%) pointed to data quality and manipulation as their biggest concern, while 20% cited cybersecurity or model risks and 17% pointed to regulatory uncertainty.

About Nickel Digital Asset Management

Nickel Digital Asset Management () is a London-based investment manager that offers a range of digital asset strategy solutions for institutional investors. Its mission is to provide a gateway for traditional investors into the digital assets market across a broad range of risk profiles.

The firm pursues a range of systematic strategies in the digital assets space, with its flagship multi- strategy non-directional fund focusing on alpha generation.

Nickel is led by a senior team of traders and investment professionals of experience gained in major Wall Street banks, including Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, as well as global hedge funds.

Risk management is the core of Nickel's approach to investment management. This was evidenced in March 2020, May 2021 when Nickel preserved the value of investor capital and delivered positive return at the time of market implosion. Nickel was named by Opalesque, the hedge fund advisory firm, as being amongst the top 2% of global asset managers "who delivered during the meltdown;.

Nickel Digital has won numerous industry awards since its inception. Among others, there are Pan Finance Best UK Digital Asset Manager (2026),The Hedge Fund Journal's Best Performing Digital Assets Multi-Manager Fund in 2024 and over 2 Years (2025), Hedgeweek Best Relative Performance of the Year

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