An intriguing trend is unfolding as an increasing number of investment firms in the United States and Europe are designating senior executives to spearhead their digital asset investment strategies. This development comes to light based on findings from a comprehensive market intelligence report.
According to the recently published ‘Digital Assets: Managers’ Data Infrastructure Fuel’ report by Amberdata, a significant 24% of asset management firms have already integrated a digital asset strategy into their operations. Furthermore, an additional 13% of these firms have concrete plans to embark on a similar journey within the next two years.
The report highlights a noteworthy observation: “These roles are being staffed up, with almost a quarter of firms with a senior role dedicated to digital assets, reflecting seriousness about implementation as well as senior management buy-in.”
To compile this insightful report, Amberdata conducted surveys involving 60 investment professionals across the United States, the United Kingdom, and Europe. The respondents encompassed a diverse range of financial experts, including asset managers, hedge fund managers, and various other investors.
Digital Asset Strategies Gaining Momentum in Investment Firms
Intriguingly, the report unveils that nearly half (48%) of the participants have already incorporated digital assets into their respective firms’ portfolios, signaling a substantial degree of industry-wide adoption.
Looking forward, the report projects the future focus of asset managers, who are expected to prioritize trading and investment strategies with a strong emphasis on creating innovative financial products.
Despite the regulatory scrutiny exercised by authorities such as the United States Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), the report anticipates a positive shift in the landscape over the next few years.
Positive Regulatory Outlook and Ripple’s Impact
The report optimistically notes, “The good news is that the tide may be turning. In the next five years, the SEC and the CFTC are expected to be providing the most positive opportunities for investors in our study.”
Additionally, the report draws attention to Ripple’s recent partial legal victory, which has the potential to entice more asset management firms to adopt digital asset strategies, further enhancing the industry’s growth trajectory.
In a related development, European digital asset manager CoinShares reported a substantial total revenue of 20.3 million pounds ($25.9 million) in the second quarter of 2023, reflecting a notable 33% increase compared to the corresponding quarter of the previous year. This financial achievement underscores the sector’s flourishing prospects.