New survey finds crypto on company balance sheets will continue to boom
The use of crypto as a reserve asset by publicly-listed companies will continue to grow with professional investors unconcerned about systemic risks, 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.
Its survey with institutional investors and wealth managers worldwide found one in three (33%) predict a dramatic increase in so-called Digital Asset Treasury (DATs) companies in the next three years with a further 54% forecasting a slight increase.
Around two out of three (63%) say that within five years 10% or more of S&P 500 companies will adopt Bitcoin on their balance sheets including one in eight (13%) who believe a fifth or more of S&P 500 firms will have done so.
The research with executives at pension funds, family offices, insurance asset managers, hedge funds and wealth managers based in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates firms that collectively manage over $14tn in assets found they are not concerned about potential risks to the digital asset ecosystem from the growth in DATs.
Nearly nine out of 10 (86%) rate the systemic risk of the growth in DATs as low or very low with just 12% rating it as a moderate risk and only 2% as high risk. More than a quarter (28%) believe DATs themselves are very attractive investments with 71% rating them as quite attractive.
The key reason driving the significant uptake of DATs identified by the research is ease of investment. Around 70% selected that as a key reason ahead of 60% pointing to the potential for leveraged returns and 54% highlighting higher yield potential and 55% a lack of other regulated ways to invest.
Around two out of three (65%) say they require chain level transparency from a DAT provider while 55% want insurance coverage and 53% real-time dashboards. Around 47% want proof of reserves and top-tier custodians such as Copper, Fireblocks or Anchorage.
Anatoly Crachilov, CEO and founding partner at Nickel Digital, said: “AUM doesn’t follow narratives, it follows innovation. The original DAT company, MicroStrategy, succeeded because it solved a real structural problem: giving investors Bitcoin exposure through existing brokerage infrastructure before ETFs existed. That edge is now gone. For the most recent wave of DAT companies to successfully raise capital, a clear innovation is needed.
We’re already seeing early attempts through yield generation, hedge fund allocations, and more active balance-sheet management, but those are becoming crowded fast. In the next phase, survival will depend on who can build something genuinely differentiated, not just a treasury, but a product investors can’t easily replicate themselves and would prefer to outsource of professional teams.”