· More than half of institutional investors say the career risk to executives of becoming involved in crypto has fallen since trump became president
· But global regulatory clarity is very important for the career risk to firms investing in digital assets
· Improved market liquidity is rated the most significant factor for mitigating career risk associated with digital asset investments
The career risk for executives becoming involved in the crypto sector is falling since the election of President Trump but regulation and liquidity are seen as important to mitigating any career risk for investing in the sector, according to new global research (1) by London-based Nickel Digital Asset Management (Nickel), Europe’s leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan.
The study with organisations invested in the sector found more than half (53%) believe the career risk for executives in the crypto sector has fallen under a Trump Presidency with 17% saying it has significantly reduced. Around a third (33%) say the risk has increased but just 1% say it has significantly increased.
Nickel’s research with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates with organisations who collectively manage around $1.1 trillion in assets shows there is a strong focus on regulation to mitigate career risk.
More than four out of five (83%) say it is extremely or very important in reducing career risk when investing in digital assets with 30% saying it is extremely important.
However, the most significant factor in mitigating career risk from investing in digital assets identified by the study is improved market liquidity. Around 38% selected that ahead of 32% selecting greater institutional involvement and 17% choosing improvements to market infrastructure. Around 13% selected regulatory clarity.
Around half (48%) questioned say they expect more trading platforms in the sector over the next 12 months, which they expect will boost institutional involvement while 24% expect more regulatory clarity and 19% more custodial solutions. Around 10% say development in blockchain scalability will help increased institutional adoption over the next 12 months.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “There clearly has in the past been a perception around career risk for executives getting involved in the crypto sector.”
“The gradual mainstream adoption of crypto including firms such as BlackRock and Fidelity has been turbo-charged by the Trump presidency and the fear of career risk is receding although many investors in the space still believe there is a stigma.
”Robust regulation is central to the growth of the sector but there are more practical issues to be addressed including better liquidity and improvements to market infrastructure that will mitigate current counterparty risks.”
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Footnotes
- Nickel Digital commissioned the market research company Pureprofile to interview 200 institutional investors and wealth managers across the US, UK, Germany, Singapore, Switzerland, Brazil and the UAE in January 2025.
About Nickel Digital Asset Management
Nickel Digital Asset Management (www.nickel.digital) is a London-based FCA-authorised and CFTC-registered investment manager that offers a range of digital asset strategy solutions for institutional investors. Its mission is to provide a gateway for traditional investors into the digital assets market across a broad range of risk profiles.
The firm pursues a range of systematic strategies dedicated to the digital assets market, with its flagship multi-strategy non-directional fund focusing on alpha generation.
Nickel is led by a senior team of traders and investment professionals of experience gained in major Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, as well as global hedge funds.
Risk management is the core of Nickel’s approach to investment management. This was evidenced in March 2020, May 2021 when Nickel preserved the value of investor capital and delivered positive return at the time of market implosion. Nickel was named by Opalesque, the hedge fund advisory firm, as being amongst the top 2% of global asset managers “who delivered during the meltdown”.
Nickel Digital has won numerous industry awards since its inception. Among others, there are Hedgeweek Best Relative Performance of the Year – Multistrategy Fund (2024), HFM EuroHedge Emerging Manager Awards (2020), HFM Quant Performance Award (2021), Best 12-Month Risk-Adjusted Performance by Hedgeweek Digital Asset Awards (2022), Best Digital Asset Manager Europe 2022 by PAN Finance (2022), and two 2023 Hedgeweek awards for best sustained risk-adjusted returns over 12 and 36 months.
Nickel Digital Asset Management Ltd is authorised and regulated by the UK’s Financial Conduct Authority (“FCA”), registered with the Commodity Futures Trading Commission (“CFTC”) and is a member of National Futures Association (“NFA”).
