A new research by Nickel Digital Asset Management indicates that 32% of institutional investors with an allocation of Bitcoin in their portfolio will invest in altcoins for the first time in the next 12 months. Notably, about 33% of the investors believe that the investment will involve a significant amount, while 29% project their altcoin investment will be gradual. On the motivation behind the planned altcoin investment, 54% of the institutions indicate the move is in line with the ongoing growth of the cryptocurrency sector. Another 45% note that it is part of diversifying their investments from Bitcoin. In comparison, 44% are motivated by the belief that an upside potential of the crypto market warrants a long-term portfolio allocation. Commenting on the findings, Anatoly Crachilov, co-founder and CEO of Nickel Digital, said the move is in line with the growth of the DeFi sector, with some altcoins showing a faster growth rate than Bitcoin. According to Crcahilov: The study surveyed institutional investors and wealth managers from the US, UK, France, Germany, and the UAE. Collectively, they control $275.5 billion in assets under management.
Impact of institutions on crypto markets
Early this year, the cryptocurrency markets embarked on a bull run emanating from increased institution entry culminating in Bitcoin attaining a record price of almost $65,000. If the same is replicated under altcoins, the affected coins might record a similar surge like Bitcoin. The development comes despite some analytic stating that an altcoin season is still far from being. For instance, Ben Lilly, crypto economist & partner at Jarvis Labs, noted that there is no indication the focus was about to turn to altcoins. [coinbase]
