Nickel Digital is a hedge fund management organization that has recently published a detailed report about the impact of the pandemic on the digital currency market. According to the report, ever since the first year of the COVID pandemic in 2019, the cryptocurrency industry has shown a significant increase in traction.
The researchers interviewed financial managers and institutional investment firms around the globe to compile the data. The report postulates that around 43% of professional financial investors have developed a positive view of digital assets thus far. Meanwhile, the remaining 35% of the voters claimed that the nascent industry is showing growth and stability.
Fiona King is the head of Sales at Nickel Digital Management. Commenting on the matter, she recently claimed that since 2020 Bitcoin and Ethereum have shown a considerable amount of increase in value. She pointed out that the Bitcoin price appreciated by 460% while Ethereum grew by 1812% for the period.
She also highlighted that there are much more financial tools and services available for cryptocurrency investors, like third-party custodial services and open-market liquidity pools. She opines that while professional investors have increased their stakes in the digital asset market, there is a new generation of financial investors who are starting their careers solely in the digital asset market.
The crypto market cap reached $3 trillion last year during the peak performance months. However, the market had a rocky start 12 years ago when Bitcoin made its appearance as a digital currency. The report published by Nickel Digital claims that as many as 58% of the traditional and pro financial managers voted in favour of the digital assets industry.
On the other hand, around 41% of the participants said that during this time, the market capitalization increased significantly. Nickel Digital researchers revealed that they invited around 50 asset managers from the top firms hailing from USA, UK, UAE, Germany, and France. It seems that cryptocurrencies have continued to gain popularity among professional investors during constrained economic conditions.