[EY] Gaining Ground: how institutional investors plan to approach digital assets in 2024

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  • Institutional investors have increased their allocations to digital assets and related products and plan to continue doing so.
  • The lack of regulatory clarity and perceived trustworthiness of ecosystem partners remain key obstacles to the growth and adoption of cryptocurrencies and tokenization.
  • The major demand for spot cryptocurrencies in 2023 has shifted to a strong preference for regulated investment vehicles in 2024, notably following the launch of Bitcoin ETPs.
  • Family offices and hedge funds have a higher allocation to cryptocurrencies and a more diversified investment across different tokens compared to asset managers and allocators.
  • There is growing interest in investing in tokenized assets, especially alternative assets, to drive portfolio diversification.
  • Asset managers, particularly large ones managing over $500 billion, are showing strong interest in launching crypto and tokenized funds.