07th April 2021
Nickel Digital Asset Management
34 St James’s Street
London SW1A 1HD
44 20 7947 0300
PROFESSIONAL INVESTORS EXPECT MORE CORPORATIONS TO USE BITCOIN AS PART OF THEIR TREASURY PLANS
New research1 with 50 institutional investors and 50 wealth managers across Europe, who collectively manage over $110 billion in assets, reveals that over the next two years 81% expect to see an increase in corporations using Bitcoin for their treasury reserves. Some 29% expect to see dramatic growth in this trend.
The survey was commissioned by Nickel Digital Asset Management (Nickel), the regulated and award-winning investment manager connecting traditional finance with the digital assets market.
Anatoly Crachilov, co-Founder and CEO of Nickel Digital, commented:
“A growing number of corporations, including car manufacturer Tesla, business intelligence firm MicroStrategy, and mobile payments processor Square have recently made non-trivial, multi-billion allocations to Bitcoin as part of their treasury reserve strategies. This, coupled with announced structural allocations to crypto assets by the leading global asset managers, including Paul Tudor Jones, Bill Miller, Ruffer, and Guggenheim Partners is a huge endorsement for the Bitcoin emerging store of value functionality.
“The COVID-19 crisis and the expansionary monetary policies that have been implemented in response to this, has changed the outlook for fiat currencies, massively increasing the risk of currency debasement. Indeed, US M2 Money Supply has increased by 28% over the last 12 months, on the strongest pace in nearly 80 years, raising red flags for many managers and asset owners, entrusted with capital preservation.
“The recent poor performance of gold, the traditional safe haven, as well as $16 trillion worth of global bonds trading in negative yield territory has also encouraged many corporations to contemplate a revision to their treasury strategies. Bitcoin, a non-discretionary asset (i.e. without anyone’s ability to unilaterally inflate its monetary policy), with unique attributes of immutable and verifiable supply, predictable issuance schedule and deflationary characteristics make it an appealing asset allocation for many corporates and asset managers alike.”
Nickel’s survey found that 85% of professional investors interviewed who already have exposure to Bitcoin, said they plan to increase their investment in it over the next two years. The main reasons for this include an anticipated growth in its valuation, followed by its ability to provide a tail hedge against excess monetary supply and currency debasement, and that the size of the market has crossed
minimum threshold for mainstream institutional investors to start allocating to this market.
Notes to the editor:
- Nickel Digital commissioned the market research company Pureprofile to interview 50 wealth managers and 50 institutional investors across the US, UK, Germany and Switzerland. The survey was conducted online in January 2021.
About Nickel Digital Asset Management
Nickel Digital Asset Management (www.nickel.digital) is a regulated London-based investment firm 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 deploys highly sophisticated low-latency algorithmic trading, pursuing a range of arbitrage strategies in both spot and derivative markets, as well as directional buy-and-hold solutions.
Nickel is led by a senior team of traders and investment professionals of experience gained in major Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, BofA, Credit Suisse, Merrill Lynch, UBS, and Rothschild as well as global hedge funds, including DE Shaw, Tudor, and Cheyne Capital Nickel Digital Asset Management is an Appointed Representative of Helford Capital Partners LLP, which is authorised and regulated by the FCA.
Risk management is the core of Nickel’s approach to investment management. This was evidenced in March 2020 when Nickel preserved the value of investor capital and delivered positive return at the time of market implosion. Nickel was named by Opalesque, the hedge fund advisory firm, as being amongst the top 2% of global asset managers “who delivered during the meltdown"
Nickel’s flagship fund, the market-neutral Digital Asset Arbitrage Fund, won the Specialist category in the HFM EuroHedge 2020 Emerging Manager Awards. The fund has delivered a string of all-positive months since inception with volatility of 2.5% and a Sharpe ratio of 4.2
Phil Anderson / Taylor Marriott
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