A new survey has found that almost half (46%) of asset owners are now holding cryptocurrencies – but some remain concerned about risk and volatility.
The research, carried out by Northern Trust, found that asset owners were increasingly interested in digital assets, with 46% of investors now holding cryptocurrencies and 44% holding exchange-traded funds (ETFs) with a digitally native investment strategy.
The survey, which included a range of institutional asset owners, including pension funds, also revealed the top reasons for not investing in digital assets among organisations that had not yet made an allocation. Concerns about risk and volatility were top of the list, followed closely by regulatory concerns and limited expertise in the area.
Asked what surprised him about the survey findings, Mark Austin, Northern Trust pensions and insurance executive, said: “We don’t see digital assets significantly in our UK client base. This survey is of a global client base of 180. I think we were surprised that there was more investment in digital assets and digital technology than we were expecting.”
An unnamed pension scheme allocated to Bitcoin in 2024, according to its adviser, Cartwright. While the scheme has still not been identified, last year Cartwright revealed the investment had netted a 56% return on the allocation.
However, over the 12 months to 21 May, the price of the cryptocurrency fell from £83,225 to £57,092, a drop of almost a third.
While investors are clearly making allocations to cryptocurrencies, digital assets may offer them a bigger underlying opportunity to improve their operational efficiency. Blockchain and tokenisation could modernise how markets work, argues Leon Stavrou, Northern Trust Asset Servicing’s head of Australia and New Zealand.
In the report, Stavrou wrote: “Asset owners are focused on improving liquidity, data quality, and operational efficiency – particularly in private assets – rather than making wholesale changes to their investment models. As regulatory frameworks and infrastructure mature, adoption will be driven by practical use cases that solve long‑standing operational challenges.”
