Digital Asset Surge: Insights & Trends

Martin Walker
Sep 10, 2023 at 08:48 am

Based on the insights from a market intelligence agency, a growing number of investment companies across the United States, the United Kingdom, and Europe are now enlisting senior executives to take the helm in guiding their digital asset investment approaches.

In accordance with a recent Amberdata report entitled "Fueling Managers' Data Infrastructure for Digital Assets," approximately one-fourth of asset management organizations have integrated a strategy for digital assets into their operations. Furthermore, an additional 13% are in the process of planning such implementations within the next two years.

This staffing trend is gaining momentum, with nearly 25% of these firms designating senior-level positions specifically for overseeing digital assets. This underscores a serious commitment to implementation, as well as gaining support from top-level management.

Companies that have allocated a senior position specifically for implementing asset strategies. Source: AmberdataCompanies that have allocated a senior position specifically for implementing asset strategies. Source: Amberdata  

The study, which encompassed 60 investment professionals spanning the U.S., U.K., and Europe, encompassed a variety of interviewees, including asset managers, hedge funds, and other investors.

Nearly half of the participants in the study, approximately 48%, have already incorporated digital assets into their firm's investment portfolios. Additionally, Amberdata projects that over the next two years, more asset management firms will place a growing emphasis on digital asset trading and investment strategies.

Despite the ongoing regulatory scrutiny within the U.S. crypto industry by both the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), Amberdata anticipates potential positive developments in the coming years.

"The encouraging news is that the situation may see a shift. Over the next five years, the SEC and the CFTC are expected to present the most favorable opportunities for investors, as our report suggests."

Furthermore, the report underscores that Ripple's recent legal victory, albeit partial, against the SEC, may serve as a catalyst for more asset management firms to embrace digital asset strategies.

In more recent developments, CoinShares, a European digital asset management firm, announced a total revenue of £20.3 million ($25.9 million) in the second quarter of 2023, marking a 33% increase compared to the same quarter in the previous year.

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