New investment inquiries from institutional investors rise 100% in the wake of Trump effect and Bitcoin approaching $110,000 price threshold. This, according to an update from Nickel Digital Asset Management.
Research from earlier this year revealed that only 20% of institutional investors “expected the $100,000 landmark to be achieved within two years.”
Bitcoin’s rise to over $100,000 landmark price is driving a surge in inquiries from new investors at Europe’s digital assets fund manager Nickel Digital Asset Management.
The London-based manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, has seen an uptick in “inquiries from existing investors and first-time institutional investors since the US Election results and Bitcoin hitting a new high of $107,000 as of 16 December 2024.”
Nickel’s flagship fund, Diversified Alpha, a quant multi-PM fund, fueled by a record YTD performance of over “30% has seen 115%3 increase in AUM since the beginning of the year with a particularly huge uptick in inquiries from prospective investors following the November 5th US presidential election.”
The surge in inquiries reportedly comes mainly from institutional investors with no previous allocations to the digital assets, “reacting prices in Bitcoin exceeding $100,0002 milestone.”
It reached $107,000 on 16 December and has gained “over 150% year to date.”
Nickel Digital research in June this year found that while almost all (97%) institutional investors and wealth managers surveyed “expected Bitcoin to surpass the $100,000 landmark at some stage, however just one in five (20%) expected that to be achieved within two years.”
Around two out of five (39%) said it would take “three years or more to hit $100,000.”
This year’s development, however, has exceed “even the most optimistic expectations.”
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital commented:
“The Bitcoin bull market is here and BTC price point exceeding $100,000 is seen by many as validation of Bitcoin long-term value proposition. It is not just the $100k landmark that sparks the renewed interest – there is a dramatic change in attitude among institutional investors driven by the anticipated changes in regulatory environment in the US but also gradual recognition of the role of digital assets in institutional portfolios.”
They added:
“Statistical evidence shows that incorporating a small proportion of digital assets results in a significant positive effect on a multi-asset portfolio, without materially impacting the portfolio’s risk profile. The fluctuating relationship between equities and digital assets means that an allocation to the asset class enhances portfolio diversification.”
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 June 2024.”
As covered, Nickel Digital Asset Management is a London-based FCA-authorized and CFTC-registered investment manager that offers “a range of digital asset strategy solutions for institutional investors.”
Its mission is to provide a gateway for traditional investors “into the digital assets market across a broad range of risk profiles.”
The firm pursues a range of systematic strategies dedicated to the digital assets market, with its “multi-strategy non-directional fund focusing on alpha generation.”
Nickel is led by a team of traders and investment professionals of experience gained in Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, as well as global hedge funds.
Risk management is said to be the “core” of Nickel’s approach to investment management.