Ethereum has the most compelling growth outlook says CoinShares report

Digital asset manager CoinShares has produced its bi-monthly report on digital assets, revealing that 42 per cent of investors see Ethereum as having the most compelling growth outlook.

CoinShares’ report, the first in a bi-monthly series, represents over USD400 billion in assets. Some 35 per cent of investors see their investments into digital assets as predominantly a speculative one, although 25 per cent saw it as a diversification tool.

Of the survey respondents who said that they had not invested, regulation, at 21 per cent, was cited as the main reason for not investing. Politics, government bans and regulation make up 58 per cent of the perceived key risks for digital assets, the survey found.

The firm found wildly different portfolio allocations to digital across different investor profiles. Family offices, which are often the more flexible investors, have the highest allocation to digital assets at 23 per cent, while retail and institutional investors remain very cautious, with just 0.1 per cent of wealth managers allocating to digital assets so far.

Opinion on whether inflation is transitory or permanent is very mixed in the survey. CoinShares writes: “We had suspected, due to bitcoin's deflationary characteristics, that our survey respondents would predominantly believe inflation was more permanent. Looking at those investors by who responded saying they have digital assets in their portfolio demonstrates there is no link.”

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