Of the 60 institutions surveyed in the United Kingdom, the United States, and Europe, an astonishing 48% reported managing their clients’ digital assets.
Institutions are unaware and optimistic about the crypto bear market. These are findings by Amberdata, a crypto data provider, which partnered with Coalition Greenwich, an international finance services analyst, to probe asset managers’ approach to digital assets.
Asset Managers Overseeing Diverse Digital Assets for Clients
On Wednesday, they published the Digital Assets: Managers Fuel Data Infrastructure Needs report, assessing sixty managers across the U.K., U.S., and Europe. Hedge funds, family offices, and venture capital companies were the entities involved.
Shawn Douglass, Amberdata’s CEO, claimed that at present, almost half (48%) of asset managers are managing digital assets. Nevertheless, there are variations in the digital assets under management (AUM) figures. Most of it falls in the lower bound, where 22% reported between $1-10M. Another 19% presently hold crypto worth between $11-50M, while only one entity operates digital assets worth more than $1B.
Amberdata’s Douglass claimed that the surveyed asset managers were quite big. The number of those who reported more than $5B in AUM across all digital assets was nearly 33%, while an additional 33% declared $1-5B in AUM. The rest held less than $1B in AUM across all classes of assets. Douglass also disclosed that in spite of the absence of a vivid regulatory environment, it was surprising to view the respondent’s optimism regarding the United States’ support for the adoption of digital assets.
Asset Managers Optimistic of Regulatory Clarity Despite the Persisting Roadblocks
Amberdata and Coalition Greenwich reported that 85% of respondents believed that in spite of near-term problems, the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) are anticipated to offer positive opportunities.
Concerns persist. Douglass claimed that the regulatory environment is one of the many likely roadblocks for the 52% of institutions not involved in crypto. In no specific order, they entail unvivid tax guidelines, the absence of a common KYC/AML technology, problematic security practices, the intricacy of custody of digital assets, and problems in blockchain performance.
Rapid Growth in Institutions Specializing in Crypto Services
Further, this report shows the institutions’ seriousness in offering specialized crypto services. 25% of the surveyed institutions claimed they presently have a dedicated role concerning digital assets. Over the next 12 months, this number is anticipated to rise by 13%. The growth amid the ongoing hard crypto bear market shows the institution’s dedication to prioritizing crypto services and products.
Douglass concluded by stating that even following FTX’s collapse, a majority of asset managers anticipate the growth of centralized exchanges over the next five years.
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