Investors earmark further cash for bitcoin allocations

Some 85% of European investors and managers with an existing bitcoin exposure plan to increase their investments over the next two years.

A survey of 50 institutional investors and 50 wealth managers with a combined $110 billion in assets, conducted in January, found that European investors anticipate growth in bitcoin’s valuation over the next two years. All of the investors and managers already had some allocation to bitcoin, a spokesman said. The survey didn’t note the breakdown of assets among institutional investors and wealth managers.

Respondents said bitcoin is also attractive as it can provide a tail hedge against excess monetary supply and the risk of decline in the value of government-backed currencies caused by the COVID-19 crisis.

The survey also found and that the market has reached a minimum size for institutional investors to enter, at about $1.07 trillion.

Commissioned by cryptoassets hedge fund firm Nickel Digital Asset Management, the survey also showed that over the next two years 81% of respondents expect an increase in corporations using bitcoin for their treasury reserves over the next two years.

“A growing number of corporations, including car manufacturer Tesla, business intelligence firm MicroStrategy, and mobile payments processor Square have recently made non-trivial, multibillion allocations to bitcoin as part of their treasury reserve strategies,” Anatoly Crachilov, co-founder and CEO of Nickel Digital Asset Management, said in a news release.