New research 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.
Wealth managers need to develop a constructive strategy around Bitcoin to provide their clients with a transparent and secure access to this market."
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-19 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."
Crachilov added: "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."