- 9% of professional investors expect at least one in four Spezialfonds to start allocating to digital and cryptoassets within the next two years
- Eight of out ten professional investors anticipate Spezialfonds will allocate over 5% of their portfolios to digital and crypto assets over the longer-term. This would equate to over $100 billion
Last year, Germany introduced the Fund Location Act, which allows specific funds – ‘spezialfonds’ (open-ended domestic special AIFs with fixed investment terms) to allocate up to 20% of their assets under management to crypto/digital assets. New research from London-based Nickel Digital Asset Management (Nickel), Europe’s largest regulated and award-winning digital assets hedge fund manager, reveals 30% of wealth managers, pension funds and other institutional investors expect over half of Spezialfonds in Germany to allocate to digital or crypto assets over the next two years (please see the attached press release). Over the long-term, 78% of the survey respondents expect them to allocate over $100 billion to crypto and digital assets – at least 5% of their of their combined assets, which are around $2 trillion.
The survey of 200 professional investors from across seven countries including Germany, who collectively manage around $329 billion in assets, reveals 30% believe between 25% and 50% of Spezialfonds will allocate to digital and crypto assets between now and 2024. Only 14% anticipate less than 10% of these funds will do so.
The Fund Location Act states that Spezialfonds can allocate up to 20% of their assets to digital and crypto assets, and 22% of professional investors surveyed by Nickel Digital believe they will allocate less than 5% over the longer-term. Some 19% believe they will allocate between 2% and 5%, but 78% expect them to allocate a higher percentage of their portfolios to digital and crypto assets.