The results of a survey of 300 asset management and administration companies by Northern Trust highlight the penetration of cryptocurrencies and digital assets in the current financial market.
According to the results, interest in cryptocurrencies and digital assets is growing.
The survey, in which 300 executives from different asset management companies worldwide participated, including CEOs, CIOs and COOs, revealed the influence of cryptocurrencies in the market, which have captured the attention of investors looking for new alternatives to maximize the profitability and efficiency of their operations.
Nearly a third of asset managers own cryptocurrencies
32% of the surveyed management companies stated that are managing cryptocurrencies and digital assets today.
Of these, 54% said their respective companies are considering supporting the emerging asset class represented by cryptocurrencies, increasing their current allocations.
Source: Northern Trust
Clive Bellows, current Head of EMEA Global Fund Services, highlighted that most asset managers are looking at new asset classes, such as cryptocurrencies, as an extension of the investor experience. He highlighted that the integration of these digital assets allows managers and administrators to offer their investors a more holistic approach, which can result in broader advantages and benefits.
Source: Northern Trust
Likewise, Caroline Higgins, Director of Global Fund Services (GFS) for Asia Pacific, said that it is not surprising to see that investment in cryptocurrencies and digital assets is on the rise, considering that they offer greater opportunities to their investors, encouraging the diversification of investment portfolios and increasing the possibility of maximizing returns, due to volatility.
Investors are betting on cryptocurrencies for the long term
Higgins also stressed that in recent years, a major shift in cryptocurrency investment structures is being seen, with More investors taking a long-term approach, rather than the focus on short-term profits that was maintained in previous years.
From another perspective, Higgins commented that asset managers are also focusing on adopting new technologies to offer more efficient services and solutions that are in line with the innovation of the growing digital economy.
On a general note, Northern Trust highlighted that a number of macroeconomic factors, such as rising costs, inflation and geopolitical uncertainty, have highlighted the need for continued innovation in the investment sector, prompting asset managers to re-evaluate their product offerings and adopt new technologies to meet the needs of their clients.
The next financial frontier
The cryptocurrency industry has grown exponentially in recent years, reaching a total market capitalization of more than $2,35 billion dollarsThis growth has gone hand in hand with the increased recognition of cryptoassets as investment assets and even, in the case of Bitcoin, as a legitimate store of value. All of this has driven asset managers to participate more actively in this market.
Last year, banking giant Goldman Sachs published a survey highlighting the growing entry of asset managers, specifically family offices, into the crypto world. The bank noted that these asset managers had increased their involvement in cryptocurrencies by 10 percentage points, motivated by the innovation of blockchain technology, its potential applications and use cases, and investor demand.
Also, blockchain data platform Amberdata said in September that asset managers were optimistic about the approval of Bitcoin spot ETFs in the United States, which was accelerating the arrival of more managers into the crypto space.
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