According to research by Coalition Greenwich and Amberdata, asset managers and hedge funds are increasingly exuding optimism and fervor when it comes to the growing potential within the cryptocurrency asset class.

A recent study has revealed that the cryptocurrency markets in the United States and Europe remain remarkably strong and are making significant progress, despite facing intense scrutiny and uncertainty in the US market.

Research by Coalition Greenwich and Amberdata reports that asset managers and hedge funds are showing increasing enthusiasm and fervor when it comes to the potential of cryptocurrency assets. Not only are they excited about the growth prospects, but they are also actively exploring and capitalizing on the multiple business opportunities this space has to offer.

In this dynamic landscape, these financial professionals see the cryptocurrency asset class as fertile ground to expand their portfolios and diversify their investments. They are not mere spectators; instead, they are actively positioning themselves to take advantage of cryptocurrencies’ growth.

Cryptocurrency Adoption Is On the Rise

Research conducted by Coalition Greenwich, a recognized global leader in strategic benchmarking, analytics and insights for the financial services sector, in collaboration with Amberdata, a leading Blockchain and cryptoasset data firm, has revealed a significant trend: its findings indicate that a substantial amount

Nearly half of asset management institutions proactively monitor cryptocurrency assets on behalf of their clients. Surprisingly, these institutions maintain a positive and optimistic outlook on cryptocurrencies, even in the face of generally bearish market sentiment.

The study, titled “Digital Assets: Managers Fuel Data Infrastructure Needs,” sought to examine how these institutions are incorporating digital asset services into their offerings, including customer interactions, investment products and related technologies, to meet the demands of their clients.

According to the study, 24% of asset management companies have implemented a strategy for digital assets and an additional 13% intend to do so in the next two years.

The data also reveals that a survey was conducted of 60 companies spanning three jurisdictions, and 25% of them currently own digital asset managers and related teams. This percentage is expected to increase by a third in the next 12 months as more companies express interest in expanding their capacity in this area.

More Countries Explore Digital Assets

Meanwhile, the cryptocurrency market remains strong, supported by centers in Dubai, Singapore, Switzerland, the United States and the United Kingdom. Financial institutions are exploring asset tokenization, while a well-regulated custody infrastructure is essential.

The competitive landscape is shifting toward data, analytics and tools for front-office professionals seeking higher returns. Over the next 6 to 12 months, increased investments in crypto data and portfolio management are expected, indicating that the industry is poised for future opportunities, according to the study.

Among institutions that do not provide crypto services, 52% attribute their stance to regulatory challenges. These entities point to several factors, such as the unique characteristics of cryptocurrencies, ambiguous tax regulations, security fears, and issues related to Know Your Customer (KYC) compliance. Asset managers anticipate growth in the overall market over the next five years, a view that aligns with previous observations made by digital asset executives.

Regarding regulations, 85% of institutional respondents believe the U.S. Securities and Exchange Commission will move away from its strict approach and encourage more favorable opportunities in the coming years, the study shows.

By Audy Castaneda


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