According to research by London-based Nickel Digital Asset Management, Europe’s regulated digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, institutional investors “are confident Bitcoin and Ethereum will sustain their strong performance for the rest of this year.”
The study with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates “who collectively manage around $3.5 trillion in assets, found 97% of investors believe Bitcoin will end the year with prices higher than current levels while almost all (99%) expect Ethereum to continue to grow in price.”
The optimism about the year ahead is feeding “through into longer-term support for Bitcoin growth – 78% believe Bitcoin will hit the landmark $100,000 valuation with 57% predicting the price will be achieved within five years.”
Nickel’s study was conducted “when Bitcoin was around $30,000 and Ethereum around $1,900.”
Just 3% of investors questioned believe Bitcoin “will end the year lower than $30,000 and only 1% expect Ethereum’s price to fall back during the rest of the year.”
The strong performance of the two key cryptocurrencies is “expected to boost demand for altcoins underlining the restored confidence in the digital assets sector.”
Around nine out of out 10 (89%) questioned believe Bitcoin and Ethereum growth “will fuel demand for altcoins.”
Institutional investors questioned believe the successful launch of “a Bitcoin Spot ETF could further boost the sector – around two out of three (64%) say it would have an impact on the price of Bitcoin with 20% forecasting a significant impact.”
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said:
“Bitcoin and Ethereum have delivered strong performances throughout the year and are around 57% and 32% higher respectively year to date, with institutional investors expecting the growth to be sustained for the rest of the year. Price predictions can of course be proved wrong in the short term by market shocks but there is genuine long-term confidence in the market with most investors believing Bitcoin will ultimately achieve the long-predicted $100,000 valuation. The market’s view on Ethereum is particularly bullish, with 99% of respondents expect ETH to finish the year above the current level of 1,900.”
Nickel Digital commissioned the market research company Pureprofile “to interview 200 institutional investors and wealth managers across the US, UK, Germany, Singapore, Switzerland, Brazil and the UAE in July 2023.”