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Pro investors predict increased level of M&A activity in crypto


According to the research by London-based Nickel Digital Asset Management, a European digital assets hedge fund manager founded by Bankers Trust, Goldman Sachs and JPMorgan alumni, institutional investors and wealth managers expect the level of M&A activity in the crypto sector to keep growing.

Nickel commissioned research with 200 professional investors from across seven countries who collectively manage around $2.2 trillion in assets and found nearly four out of five (79%) predict the rising level of M&A in the market to continue to increase over the next 12 to 24 months.

Increased M&A activity will not stop the launch of new funds investing in crypto and digital assets, the research shows, with more professional investors surveyed expecting a rise in the number of new funds compared with those expecting a fall in fund launches.

Around 43% predict a rise in the number of crypto and digital asset focused funds in the next 12 months compared with 36% predicting a cull of funds.

Capital protection will be critical to future of funds

There is a strong consensus about the future for funds which have demonstrated ability to mitigate negative impact of the crypto sell-off on the underlying portfolios, with as much as 80% saying they are more likely to allocate to funds which have protected capital whilst demonstrating risk management acumen during the market turmoil.

Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “The failure of a few large centralised players in crypto space led to a wave of bankruptcies amongst the firms overexposed to them, setting the scene for a major M&A activity in the sector and, ultimately, leading to complete reshaping of competitive landscape.”

Nickel Digital Asset Management is a London-based FCA-authorised and CFTC-registered investment manager that offers a range of digital asset strategy solutions for 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 flagship offering of market-neutral arbitrage and multi-strategy non-directional funds, focusing on alpha generation.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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