Wealth managers are increasingly positive on the outlook for digital assets as their understanding of the sector improves, according to Nickel Digital Asset Management.

Its study of institutional investors and wealth managers invested in the sector found that 90 per cent felt positive about digital assets as an asset class, including 13 per cent that were very positive.

The remaining 10 per cent of respondents said they were neutral in their opinion of digital assets.

Nickel’s research also found evidence of deeper engagement with the digital asset sector when it came to the potential benefits.

The ability to trade 24/7 and the efficiency of the DeFI ecosystem were rated at the two biggest benefits of investing in the sector, ahead of the prospect of better returns than other asset classes, which was rated third.

Capital appreciation and digital assets' role as a hedge against currency depreciation were ranked fourth and fifth respectively, ahead of yield opportunities and their role as a hedge against inflation.

Almost all (94 per cent) respondents felt digital assets would serve as a hedge against inflation and economic instability over the next 12 months, while 87 per cent expected global market capitalisation to increase this year.

“We’re seeing a clear shift from hype to appreciation,” commented Nickel Digital CEO and founding partner, Anatoly Crachilov.

“Institutional investors increasingly value the structural advantages of digital assets - like 24/7 trading and the efficiency of DeFi - over speculative returns.

“This signals further maturation of the asset class that is now being recognised for its resilience and utility, particularly in times of increasing economic uncertainty.”

---