REGULATOR ACTION IS DRIVING INCREASED DIGITAL ASSET INVESTMENT
· institutional investors and wealth managers planning to invest for the first time say regulatory improvement is more important than growth potential
· first time investors most likely to choose digital asset etfs, survey finds
- OVER 8 IN 10 INVESTORS SURVEYED PLAN TO INVEST IN DIGITAL ASSETS FOR THE FIRST TIME IN THE NEXT 12 MONTHS
Improvements to digital asset regulatory frameworks are the main reason convincing professional investors to take their first stakes in the sector, according to new global research (1) by London-based Nickel Digital Asset Management (Nickel), Europe’s leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan.
Its study with institutional investors and wealth managers found more than two out of three (68%) firms planning to invest in digital assets for the first time in the next 24 months say regulatory improvements are among their top three reasons for doing so ahead of 54% citing the potential for capital growth.
Nearly half (44%) said greater stability in the sector and growing evidence that digital assets can improve diversification as key reasons for investing for the first time while 42% say increased interest from large financial institutions is encouraging them to invest,
The research with executives at firms in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates which collectively manage over $14 trillion in assets found 50% of those who have not yet invested will choose digital asset ETFs while 28% will select Bitcoin and 17% mutual funds in the sector.
Price volatility and security concerns were the two key reasons preventing them from investing until now, the study found with worries about market manipulation, lack of regulatory clarity and concerns around custody issues also major barriers.
The study which focused on firms planning to invest for the first time in the next 24 months found 82% expect to invest in the digital assets sector in the next 12 months with 7% planning to do so in the next six months.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: ““The growth potential of digital assets is now well established, and their role in portfolio diversification is increasingly recognised.”
That said, regulatory clarity remains essential in providing reassurance to more new incoming institutional investors, many of whom must win internal debates around the timing and structure of allocations, with ETFs often forming a key part of that discussion. Robust regulatory frameworks are critical to enabling the asset class to mature responsibly and will serve as the foundation for broader institutional adoption.”
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Footnotes
- Nickel Digital commissioned the market research company PureProfile to interview 260 institutional investors (pension funds, family offices, insurance asset managers and hedge funds) and wealth managers across the US, UK, Germany, Singapore, Switzerland, Brazil and the UAE in January 2026. The sample included 108 which do not currently invest in crypto and digital assets but intend to do so in the next 24 months
About Nickel Digital Asset Management
Nickel Digital Asset Management (www.nickel.digital) 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 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 – Multistrategy Fund (2024), HFM EuroHedge Emerging Manager Awards (2020), HFM Quant Performance Award (2021), Best 12-Month Risk-Adjusted Performance by Hedgeweek Digital Asset Awards (2022), Best Digital Asset Manager Europe 2022 by PAN Finance (2022), and two 2023 Hedgeweek awards for best sustained risk-adjusted returns over 12 and 36 months.
Nickel Digital Asset Management Ltd is authorised and regulated by the UK’s Financial Conduct Authority (“FCA”), registered with the Commodity Futures Trading Commission (“CFTC”) and is a member of National Futures Association (“NFA”).
