Europe’s largest regulated digital assets hedge fund manager Nickel has conducted an extensive survey in recent days among institutional investors and wealth managers, which confirms the increased interest in altcoins.
Thanks to this survey, Nickel learned several interesting claims, including, for example, that one in three (33%) believes that it will dramatically increase the allocation to this class of cryptocurrencies (altcoins).
An important finding was also that 32% of these institutional investors predict that those who have invested in Bitcoin will also be redirected to altcoins over the next 12 months.
As to the rationale for these claims, why they focus more on altcoins, 54% of respondents cited the main reason as the fact that the range of cryptocurrencies have seen their market cap reaching meaningful thresholds and establishing leadership positions.
Another group was 45% of all applicants, which stated that it was because crypto assets are showing attractive diversification benefits from bitcoin. The last group (44%) justified this by saying that the upside potential of the altcoin market warrants a long-term portfolio allocation.
Many DeFi protocols have seen their market cap increasing dramatically over the past year, with valuations rising faster than Bitcoin. These assets are addressing real life use cases and based on greater programmability than Bitcoin, which is reflected in their price dynamics. It is no surprise therefore that forward-looking institutional investors and wealth managers are increasingly paying attention this emerging part of crypto market. said Anatoly Crachilov, co-Founder and CEO of Nickel Digital
The survey involved institutional investors and wealth managers from the US, UK, France, Germany and the UAE, who collectively have $275.5 billion in assets under management.