• 80% OF ISRAELI PROFESSIONAL INVESTORS EXPECT MORE CRYPTO/DIGITAL INVESTMENT FUNDS TO BE LAUNCHED OVER THE NEXT THREE YEARS • ISRAELI INVESTORS EXPECT THE REGULATORY FRAMEWORK TO IMPROVE HELPING TO DRIVE INSTITUTIONAL ASSET ALLOCATIONS
A new study (1) from London-based Nickel Digital Asset Management (Nickel), Europe’s largest regulated and award winning digital assets hedge fund manager founded by senior traders and investment professionals formerly from major financial institutions including Goldman Sachs and JPMorgan shows professional investors in Israel expect more crypto/digital investment funds to launch as regulation of the sector improves.
Nickel commissioned research with professional investors In Israel who collectively manage around $21 billion in assets, and over the next three years 80% expect a rise in the number of funds available with more than a quarter (26%) predicting a dramatic increase. The investors, who work for institutional investors, wealth managers, fund managers and hedge funds, are optimistic about the crypto regulatory framework over the next two years with 87% expecting an improvement including 40% who expect it to become significantly more constructive.
Part of the reason for improvements in regulation will be down to the fear of missing out – nearly three quarters (73%) say the positive attitude to regulation taken by Germany and the UAE will influence other countries to follow suit. However, 60% worry that Germany and the UAE will take a huge leap ahead due to their attitude to regulation.
As well as a rise in the number of crypto/digital investment funds being launched Israeli investors believe institutional allocations to crypto will rise – nearly half (46%) predict pension funds and other institutions will increase allocations. Increased allocations and investment will increase the pressure on wealth managers from high-net-worth clients to advise on crypto according to 73% of investors while 80% believe wealth managers will lose business if they do not.
Two-thirds (66%) believe the level of advice and education pension fund trustees want will increase. Fiona King, Managing Director Institutional Sales, at Nickel Digital, said: “Israeli investors expect investment strategies around digital assets to develop rapidly and are optimistic about regulatory change. Since our business was formed in 2018, we have launched four distinct digital asset funds, and are looking to develop more products to cater to our client’s needs.
“Nickel sees Israel as an exciting market within EMEA and with the increase in awareness of digital assets within this region is seeing increasing interest across all our fund solutions. We are in discussions with a number of institutions in the region looking to increase their exposure to this asset class.
Registered in England & Wales No. 12306648 I 34 St James’s Street, London SW1A 1HD Nickel Digital Asset Management Ltd is authorised and regulated by the Financial Conduct Authority “We are only at the very beginning of the digital asset sector, and the most exciting developments have yet to happen.
Record inflows of venture capital in 2021, continued product innovation at the blockchain level and ongoing adoption of the largest players in traditional finance all point to growth of the already multi-trillion-dollar asset class.” Nickel’s research found strong support for digital assets among Israeli investors – 87% believe they will become mainstream assets while 93% believe that digital assets – in particular DeFi protocols – are emerging as an important disruptive technology for traditional finance.
When asked for their main overarching view on blockchain and digital asset technology, 53% of professional investors said it is scalable and, on the way, to achieving mainstream adoption, while 26% said it bears strong transformative potential for the global economy. –