Nickel Digital AM: Crypto and PE offer the best opportunities for risk-adjusted returns
Cryptocurrencies and private equity offer the biggest opportunities for risk-adjusted returns over the next five years, according to new global research by Nickel Digital Asset Management
Its study with institutional investors and wealth managers found two out of three (65%) included crypto and 61% selected private equity among their top five asset classes for risk-adjusted returns over the next five years ahead of 53% who included European equities and commodities respectively in their top five.
The confidence in crypto’s long-term performance identified by the research with executives at firms in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates which collectively manage over $14 trillion in assets is backed by their own investment plans.
Within three years nearly half (47%) expect to have 3% or more of their organisation’s overall assets invested in crypto and digital assets compared with less than one in five (18%) who currently estimate that 3% or more of their organisation’s assets are in crypto and digital assets.
Around one in eight (13%) estimate 5% or more of their assets will be invested in crypto and digital assets in three years compared with just 6% currently. Firms questioned rank the 24/7 marketplace in crypto and digital assets and the prospect of better returns than other asset classes as the key benefits of investing in the sector.