- More than half of institutional investors and wealth managers surveyed say the career risk for executives in the crypto sector has decreased since the election of President Trump.
- Only a small percentage of respondents, 17%, believe the risk has significantly decreased.
- 33% of respondents believe the risk has increased, while 1% believe it has significantly increased.
According to new research by London-based Nickel Digital Asset Management, the perception of career risk for executives in the crypto sector is shifting. The study, which involved over 200 institutional investors and wealth managers across the globe, found that more than half (53%) believe the career risk has decreased since President Trump took office.
Investors Prioritize Regulation to Mitigate Career Risk
- 83% of respondents said it is extremely or very important to reduce career risk when investing in digital assets.
- 13% selected regulatory clarity as the most significant factor.
- 32% selected greater institutional involvement, and 38% selected improved market liquidity.
Nickel Digital Asset Management’s research highlights the importance of regulation in mitigating career risk. However, the study also reveals that improved market liquidity is the most significant factor in reducing career risk associated with digital asset investments. Around 38% of respondents chose this option, ahead of 32% selecting greater institutional involvement and 17% selecting regulatory clarity.
Market Liquidity a Key Concern
| Rating | Percentage |
| Improved market liquidity | 38% |
| Greater institutional involvement | 32% |
| Regulatory clarity | 17% |
| Development in blockchain scalability | 13% |
The study also found that around half (48%) of respondents expect more trading platforms in the crypto sector over the next 12 months, which they expect will boost institutional involvement. Additionally, 24% expect more regulatory clarity, and 19% expect more custodial solutions. Anatoly Crachilov, CEO and Founding Partner at Nickel Digital Asset Management, stated: “There clearly has 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.”
Global Regulatory Clarity Essential
“Global regulatory clarity is very important for the career risk to firms investing in digital assets.” — Anatoly Crachilov, CEO and Founding Partner at Nickel Digital Asset Management
The research underscores the importance of global regulatory clarity in mitigating career risk associated with digital asset investments. According to Anatoly Crachilov, CEO and Founding Partner at Nickel Digital Asset Management, “global regulatory clarity is very important for the career risk to firms investing in digital assets.”
Addressing Practical Issues
- 48% of respondents expect more trading platforms in the crypto sector over the next 12 months.
- 24% expect more regulatory clarity.
- 19% expect more custodial solutions.
The study highlights the need for addressing practical issues such as better liquidity and improvements to market infrastructure to mitigate current counterparty risks. According to Anatoly Crachilov, “there are more practical issues to be addressed including better liquidity and improvements to market infrastructure that will mitigate current counterparty risks.”
Market Development Expected to Boost Institutional Adoption
Development in blockchain scalability is expected to help increase institutional adoption over the next 12 months.
The study found that 10% of respondents expect development in blockchain scalability to help increase institutional adoption over the next 12 months.
Conclusion
The study provides insights into the perceptions of career risk for executives in the crypto sector. While the perception of career risk is falling, regulation and liquidity are seen as important to mitigating any career risk for investing in the sector. The study underscores the importance of global regulatory clarity and the need to address practical issues to mitigate current counterparty risks. As the crypto sector continues to evolve, it is essential to address these concerns to ensure the sector’s growth and stability.