"The positioning of digital assets within institutional portfolios has been focused on trading of cryptocurrencies, with bitcoin and ether representing the largest investment avenues," the report reads. "But institutional investors are exhibiting greater optimism around digital assets, encouraged by the expanding availability of a wider range of investment vehicles that take them beyond just cryptocurrencies."
"More institutional investors are now considering digital assets outside of just holding cryptocurrencies, such as staking, crypto derivatives, and tokenized bonds, highlighted by the uptick in digital assets on the market like the European Investment Bank's pounds 50 million ($66 million) digitally native bond, the $1 billion in tokenized U.S. treasuries, and the HK$6 billion ($766.8 million) Hong Kong digital currency bond."
"Currently, asset managers allocate between 1%-5% of their assets under management (AUM) to digital assets," the article points out, emphasizing the increasing allocations are likely to rise significantly by 2027.
"51% of institutional investors are considering spot crypto allocations, 33% are looking at staking digital assets, 32% are exploring crypto derivatives and 36% are looking at funds that track crypto," highlighting the diversification in strategies.
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