Bitcoin’s meteoric rise to over USD100,000 landmark price earlier this month is driving a surge in inquiries from new investors at Europe’s leading digital assets fund manager Nickel Digital Asset Management (Nickel).
The London-based manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, writes that it has seen a huge uptick in inquiries from existing investors and first-time institutional investors since the US Election results and Bitcoin hitting a new high of USD107,000 as of 16 December 2024.
Nickel writes that its flagship fund, Diversified Alpha, a quant multi-PM fund, fuelled by a record YTD performance of over 30 per cent, has seen a 115 per cent increase in AUM since the beginning of the year with a particularly huge uptick in inquiries from prospective investors following the November 5th US presidential election.
The surge in inquiries comes predominantly from institutional investors with no previous allocations to the digital assets, reacting to prices in bitcoin exceeding USD100,000 milestone, the firm says, adding that it reached USD107,000 on 16 December and has gained over 150 per cent year to date.
Nickel Digital research in June this year found that while almost all (97 per cent) institutional investors and wealth managers surveyed expected bitcoin to surpass the USD100,000 landmark at some stage, however just one in five (20 per cent) expected that to be achieved within two years. Around two out of five (39 per cent) said it would take three years or more to hit USD100,000. This year’s development, however, has exceeded even the most optimistic expectations, the firm writes.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, says: “The bitcoin bull market is here and BTC price point exceeding USD100,000 is seen by many as validation of bitcoin long-term value proposition.
“It is not just the USD100k landmark that sparks the renewed interest – there is a dramatic change in attitude among institutional investors driven by the anticipated changes in regulatory environment in the US but also gradual recognition of the role of digital assets in institutional portfolios.
“Statistical evidence shows that incorporating a small proportion of digital assets results in a significant positive effect on a multi-asset portfolio, without materially impacting the portfolio’s risk profile. The fluctuating relationship between equities and digital assets means that an allocation to the asset class enhances portfolio diversification.”
Institutional Asset Manager’s sister title, ETF Express, has recently launched a monthly cryptocurrency column, in partnership with Trackinsight and CoinDesk. Follow this link to read more.
