The crypto market is growing and attracting financial institutions looking to diversify their portfolios and capitalize on opportunities. A recent study by Coalition Greenwich and Amberdata reveals the increasing interest and adoption of digital assets in the asset management industry, indicating potential for future growth and investment.
The study, called “Digital Assets: Managers Fuel Data Infrastructure Needs,” shows that financial institutions are exploring asset tokenization and recognizing the importance of well-regulated custody infrastructure for digital asset security. This reflects a changing competitive landscape, with asset managers focusing more on data, analytics, and tools that can provide higher returns.
The research surveyed 60 companies and found that 48% of asset management institutions are actively overseeing cryptocurrency assets for their clients. This shows a significant shift in attitudes, with 24% already implementing a digital asset strategy and an additional 13% planning to do so within two years.
While the US and Europe have led the crypto market, more countries like Dubai, Singapore, Switzerland, and the UK are now exploring digital assets to expand their financial markets. This contributes to the overall strength of the market.
Despite scrutiny and uncertainty in the US market, the study shows that the cryptocurrency markets in the US and Europe remain robust and continue to progress. Asset managers and hedge funds see the crypto asset class as an opportunity to expand portfolios and diversify investments.
Regulatory challenges are a major obstacle to digital asset adoption. Among institutions that don’t provide crypto services, 52% cite regulatory challenges. However, institutional respondents believe the US Securities and Exchange Commission will adopt a less strict approach in the future, creating better opportunities. In fact, 85% of respondents expressed this sentiment.
The study highlights the importance of data infrastructure in the digital asset space. Investments in crypto data and portfolio management are expected to increase in the next 6-12 months, indicating industry readiness for future opportunities. Companies like Amberdata play a crucial role in providing tools and insights for financial professionals in this emerging asset class.
Looking ahead, the percentage of asset management firms implementing a digital asset strategy is expected to increase by a third in the next 12 months, as more firms show interest in expanding in this area. This growth is driven by the unique characteristics of cryptocurrencies, the need for clarity in tax regulations, and addressing security concerns and KYC compliance.
As the crypto market evolves, financial institutions recognize the potential of digital assets and actively seek ways to capitalize on them. The study by Coalition Greenwich and Amberdata provides valuable insights into the shifting landscape of the asset management industry and the growing importance of digital assets in investment strategies.
In conclusion, financial institutions are embracing digital assets as the crypto market thrives. With well-regulated custody infrastructure and a shift towards data and analytics, asset managers anticipate growth in the market for the next five years. As institutions explore asset tokenization and overcome regulatory challenges, the future of digital assets looks promising, offering new opportunities for financial professionals and investors.
Be the first to comment