The report highlights that “digital cash” and tokenized versions of listed equities or fixed income are the most prevalent forms of these investments, with respondents reporting an average allocation of 1% in each category.
Interestingly, asset managers show a greater inclination towards crypto assets compared to asset owners. For instance, managers are twice as likely to hold 2-5% of their portfolios in Bitcoin (BTC)—14% of managers versus 7% of owners.
The report reveals that asset managers are leading the way in terms of exposure to tokenized assets. They report a significant presence in the tokenization of public assets (6% versus 1% for owners) and private assets (5% versus 2%). 7% of managers have invested in digital cash, compared to only 2% of asset owners.
Last year, the research did not specify percentage holdings but focused on whether respondents intended to increase their digital asset exposure. At that time, one-third of respondents (33%) planned to maintain their current holdings, while half (50%) aimed for increases within the following year.
Looking ahead five years, 69% of respondents anticipated increasing their allocations, with 26% planning “significant” increases. This consistency in intention suggests a steady trend toward greater digital asset allocations.
Despite stablecoins and tokenized real-world assets (RWAs) forming the largest part of these allocations, crypto assets remain pivotal in generating returns.
Looking forward, the research reveals that most institutions expect crypto assets to become mainstream within the next decade. However, respondents express caution regarding the pace of this growth.
At the time of writing, the leading crypto, Bitcoin, is trading at $122,670. It is attempting to consolidate above the $120,000 mark, with the aim of establishing it as new support for further potential upward movements and new record highs.
Featured image from DALL-E, chart from TradingView.com
