County, state, and national pension plans are big players on the institutional investor scene, and many aren’t afraid to embrace alternative assets, such as private equity.
However, it could take some time for pension plans to warm up to bitcoin, and much of that lag appears to revolve around price. A recent survey by Nickel Digital Asset Management – Europe’s largest regulated digital asset hedge fund manager – indicates that 42% of pension managers surveyed want bitcoin to cross $100,000 before allocating it to the most great digital currency.
Nickel Digital “surveyed 200 professional investors from seven countries who collectively manage approximately $329 billion in assets and found that 13% say Bitcoin needs to consistently hit $50,000 for pension funds to cope with pressure, and 28% believe the figure is above $75,000 Only 3% believe that pension plan allocation to digital assets does not depend on the price Bitcoin reaches,” according to the company.
Another 15% of repo managers want to see bitcoin hit $200,000 before getting involved. In other words, 57% of pension bosses surveyed by Nickel Digital want to see the cryptocurrency more than double or quintuple from current levels. Assuming these gains materialize, investors in bitcoin itself or in funds such as the Grayscale Bitcoin Trust (GBTC) could benefit dramatically.
On the retirement/bitcoin side, there is good news: the interest is there.
“According to research by Nickel, over the next two years, 71% of professional investors believe the level of advice and education that pension trustees and other professionals managing pension plans will want around crypto and digital assets will increase – 26% expect demand to increase significantly. . Only 9% anticipate a drop in the level of demand for advice from pension professionals regarding crypto and digital assets, and 20% do not anticipate any change,” says the UK-based company.
Two-thirds of those polled by Nickel Digital expect the level of pension-focused crypto-related advice to increase significantly or slightly over the next two years. One of the reasons retired investors are taking a wait-and-see approach to crypto could be the fact that the universe is growing and changing rapidly.
“Bitcoin is by far the largest crypto asset, so many investors use it as a benchmark for the broader digital asset industry. However, this is changing as new digital assets are launched and existing ones continue to grow. says Henry Howell, business development manager at Nickel Digital.
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Opinions and predictions expressed herein are solely those of Tom Lydon and may not materialize. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.