92% of Asset Managers Expect More Digital Asset Funds from Traditional Firms - Survey
Institutional investors and wealth managers predict a surge in the launch of new digital asset funds within the coming year. They expect this trend to substantially transform the sector amid growing interest among tradit...
Institutional investors and wealth managers predict a surge in the launch of new digital asset funds within the coming year. They expect this trend to substantially transform the sector amid growing interest among traditional institutions.
According to a study by Nickel Digital Asset Management, the growing trend indicates that established financial players are preparing to take a larger stake in the digital finance ecosystem, led by the success of tokenized funds like BlackRock's BUIDL.
Potential Surge in Crypto Fund
The research found that 70% of respondents expect an increase in the launch of digital asset-focused funds compared to the previous year. Among them, 14% predict this growth will be dramatic, highlighting the rapid momentum in the space.
The study surveyed financial institutions across the US, UK, Germany, Switzerland, Singapore, Brazil, and the United Arab Emirates, managing a combined $1.7 trillion in assets.
Commenting about the findings, Anatoly Crachilov, the CEO and Founding Partner at Nickel Digital, said: “As the digital asset sector evolves and new funds come to market, it’s clear that institutional investors are driving this expansion.”
“At Nickel Digital, we welcome this development and continue to cater to growing allocators’ interest by offering low-volatility, risk-controlled investment solutions, leveraging our five-year audited track record in the digital assets space.”
Nearly 93% of those surveyed believe that more traditional firms will enter the digital asset sector in the next three years, with 38% anticipating a dramatic increase. The study highlighted that the recent success of BlackRock's tokenized BUIDL fund is a key driver behind this trend.
Paving the Way for Tokenized Investments
Launched on the Ethereum network in March, BlackRock’s BUIDL fund reportedly holds an estimated $500 million in assets under management (AUM), but almost all respondents (95%) expect BUIDL to grow to $10 billion by the end of 2025.
The BUIDL fund holds short-term US Treasuries, which helps mitigate counterparty risk while allowing investors to earn a yield linked to the US dollar. This structure has made BUIDL particularly appealing to institutional investors looking for a stable yet profitable asset class.
Interest in tokenized funds goes beyond mere curiosity. The study found that 5% of institutional investors are already invested in tokenized funds, with an additional 13% planning to invest within the next year.
This article was written by Jared Kirui at www.financemagnates.com.Original source
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