Over half (53 per cent) of investors believe that institutional investors will look to ‘dramatically increase’ the diversification of their portfolios over the next two years, according to Nickel Digital Asset Management.

The survey undertaken by Pureprofile on behalf of Nickel Digital also found that a further 40 per cent think there will be a ‘slightly greater’ focus on diversification. The survey features responses from institutional investors and wealth managers in the US, UK, France, Germany, and the UAE who collectively have USD 275.5bn in assets under management.

As part of their plans to diversify, the majority of respondents expect institutional investors to increase their exposure to alternative asset classes over the next two years. Some 42 per cent of professional investors surveyed said they expect institutional investors to ‘dramatically’ increase their exposure to cryptocurrencies between now and 2023.

Commenting, Nickel Digital head of institutional sales, Fiona King, said: “The digitisation of the investment management sector has revolutionised the market in terms of the transparency around different asset classes and the investment strategies that can be developed.

"This, coupled with developments around alternative asset classes such as cryptoassets, means the opportunities to diversify portfolios have never been greater.”

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