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Recent surveys of hedge fund CFOs, wealth managers, and institutional investors highlight that interest in cryptocurrency is far from waning. Corporations and investment professionals are merely in the very early stages of amassing exposure to this nascent asset class.
Is cryptocurrency adoption reaching a tipping point? Surveys conducted by Nickel Digital Asset Management and Intertrust Group in many ways reflect this notion. The survey results highlight the growing interest in allocating portions of cash holdings and treasury reserves to Bitcoin. (See Bitcoin Stock Comparison on TipRanks)
Although MicroStrategy (MSTR) and Tesla (TSLA) may have dominated the headlines with their purchases of the seminal cryptocurrency, they are but a few of the publicly traded companies that have exposure to Bitcoin, according to Nickel.
The firm’s research pointed to 19 listed companies, with a collective market capitalization exceeding $1 trillion, that currently have Bitcoin allocations worth approximately $6.5 billion on their balance sheets.
The geographical composition of these companies is mainly centered on North America, with 13 Canadian and U.S. companies making the list. The remaining companies are located in Europe, Turkey, Hong Kong, and Australia. Moreover, Nickel revealed that another 17 unnamed companies had added exposure to the asset class, although details are sparse at this stage.
More impressive than the publicly-listed companies accumulating the cryptocurrency is the $43.2 billion of Bitcoin held by exchange-traded products (ETPs) and closed-end trusts. Besides retail exposure, the exciting development here centers on the growing adoption by asset managers and institutional investors.
Cryptocurrency Numbers Rising
Besides for the allocation research, Nickel’s survey of 50 wealth managers and 50 institutional investors earlier this year revealed the following staggering highlights:
● 81% of respondents expect to see a greater number of corporations embrace Bitcoin as part of their treasury reserves
● Of the 81% of respondents, 29% believe that this trend will experience sensational levels of growth
These results are echoed by an April survey of 100 senior-level hedge fund participants from Europe, North America, and Asia, which was commissioned by Intertrust Group. Among the revelations was that 98% of respondents believe that their funds will have investment exposure to cryptocurrencies within the next five years. In addition, allocation forecasts revealed the following:
● Survey participants believed that, on average, 7.2% of cash holdings would eventually be stored in cryptocurrencies