Research reveals wealth managers are increasingly focusing on Bitcoin

RESEARCH REVEALS WEALTH MANAGERS ARE INCREASINGLY FOCUSING ON BITCOIN

New research (1) with wealth managers across Europe reveals 18% believe clients’ have a very positive outlook on Bitcoin, which is driving them to make allocations to the cryptocurrency.

The survey, which was commissioned by Nickel Digital Asset Management (Nickel), the regulated and award-winning investment manager connecting traditional finance with the digital assets market, also shows that 42% of wealth managers are placing an increasing focus on Bitcoin with a view to allowing their investor to allocate to this new asset class.

However, only one in five wealth managers interviewed said they have a good understanding of their clients’ optimal holding structures for Bitcoin and have existing relationships with service providers. One in three (32%) said they are providing execution only investment in Bitcoin to clients.

Anatoly Crachilov, co-Founder and CEO of Nickel Digital, commented:

“There is little doubt that Bitcoin is increasingly being accepted as an established asset class. The COVID crisis has intensified this adoption, as investors increasingly look to hedge their portfolio against the tale risks of rising inflation and currency debasement.”

“Wealth managers need to develop a constructive strategy around Bitcoin to provide their clients with a transparent and secure access to this market.

“Those wealth managers who continue to live in denial and often suggest their clients do not seek an access to these assets, are in for a surprise. The increased mobility of capital suggests the capital is being moved to other crypto-friendly providers in search of implementation and access channels, providing an empirical evidence of growing demand.”

(1) Nickel Digital commissioned the market research company Pureprofile to interview 50 wealth managers across the US, UK, Germany and Switzerland. The survey was conducted online in January 2021.

About Nickel Digital Asset Management
Nickel Digital Asset Management (www.nickel.digital) is a regulated London-based investment firm 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 deploys highly sophisticated low-latency algorithmic trading, pursuing a range of arbitrage strategies in both spot and derivative markets, as well as directional buy-and-hold solutions.
Nickel is led by a senior team of traders and investment professionals of experience gained in major Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, BofA Merrill Lynch, UBS and Rothschild as well as global hedge funds. Nickel Digital Asset Management is an Appointed Representative of Helford Capital Partners LLP, which is authorised and regulated by the FCA.
Risk management is the core of Nickel’s approach to investment management. This was evidenced in March this year when Nickel preserved the value of investor capital and delivered another positive month. 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’s flagship fund, the market-neutral Digital Asset Arbitrage fund, recently won the Specialist category in the HFM EuroHedge 2020 Emerging Manager Awards. The fund has delivered a string of all-positive months since inception with volatility of 1.9% and a Sharpe ratio of 4.6.

Nickel Digital Asset Management
34 St James’s Street
London SW1A 1HD
United Kingdom
+44 20 7947 0300
www.nickel.digital