The Current State of Digital Assets; CoinShares Fund Manager Survey

CoinShares conducted a Fund Manager Survey on digital assets, and there are a lot of interesting findings. The survey revealed significant growth of digital assets in portfolios, an increase in altcoin adoption as well as Bitcoin’s continued dominance as the cryptocurrency of choice for potential growth in the future. 

Our Digital Asset Fund Manager Survey has now been published

– In our first survey since the approval of the US spot bitcoin ETFs, bitcoin has retained the top spot, with 41% of investors believing it has the most compelling growth outlook.
– Digital assets weighting in…

— James Butterfill (@jbutterfill) April 25, 2024

In the Survey, fund managers were asked to reveal which digital asset they believed to have the most compelling outlook. The outcome is somewhat consistent with market cap listings on Coinmarketcap. Bitcoin leads the race, with 41% of fund investors vouching for it. Other cryptocurrencies that made the list include ETH at 31%, Solana at 18%, Polkadot, and Cardano at 3% and 2%, respectively. Interestingly, about 3% of fund managers also believed that none of the digital assets had a great growth outlook. 

Data From CoinShares Survey Report

Digital Assets Weightings on Portfolios

Although crypto assets constituted about 3% of the total portfolio value, interesting dynamics are revealed when fund managers are categorized even further. Equities appear to be the most preferred in portfolios, with a 55.7% score; fixed-income assets come second with 32.3%, while Cash, Commodities, and Digital Assets each constitute less than 10%. 

Interestingly, individual managers appeared to have the most affinity for digital assets. Portfolio positioning for individual investors revealed close to 55% comprised of digital assets, and equities came in at a distant second, with 24%. Individual investors expressed the slightest interest in commodities and fixed-income categories. 

Data From CoinShares Survey Report

Slightly over a quarter of investors and fund managers have invested in Bitcoin, while Ethereum has precisely 25%. Interestingly, none of the survey respondents currently hold XRP, while about 10-15% hold Solana or Multi-assets. Polkadot (DOT) and Cardano (ADA) have about 5-10% of investors.  

Reasons for adding digital assets to the Portfolio

The recently conducted CoinShare fund manager’s survey on digital assets had six reasons to choose from. Slightly under a quarter of the survey respondents said their primary reason for adding digital assets is for exposure to distributed ledger technology. Amazingly, another 23% see crypto assets as good value. Client demand and Speculative reasons each made up about 20% of investors, while Diversification commanded less than 15% of respondents. 

Fund managers also indicated that regulation is the main barrier, limiting their investments in digital assets. Other concerns included corporate restrictions, volatility, accessibility, and custody concerns. These exciting figures show the persistent growth of blockchain technology and cryptocurrencies, showing how fund managers are keen on developments within the industry. As the regulatory battles continue, investors are certainly watching closely for opportunities. 

Report Originally Shared by CoinShares.