Despite a difficult first half of 2022 for all cryptocurrencies, a recent analysis indicated that Bitcoin remains the most robust and investor favourite.
For the first half of 2022, HANetf issued its 'Digital Assets and Crypto Review.' 75% of 75 European fund managers polled stated they wanted to increase their exposure to bitcoin in the next 12 months.
Hector McNeil, co-chief executive officer and co-founder of HANetf, said: “Investors are increasingly interested in cryptocurrencies, despite the especially volatile start to this year”.
This year has been turbulent for cryptocurrencies, with Polygon posting the poorest performance in H1 2022, with -82.61% returns, followed by Solana with -81.41% returns. Despite market volatility, Bitcoin saw the best returns of -76.85% among its peers. The world's oldest cryptocurrency continues to wreak havoc on investors, but it has "shown to be the most resilient."
Bitcoin is the most popular coin among investors. "In times of stress, investors favour the world's oldest cryptocurrency," said Tome Bailey, head of ETF research at HANetf.
Out of 75 wealth managers, 57.90% indicated a good perspective towards Bitcoin, whilst 27.60% stated the same feelings about Solana. According to data, Bitcoin continued to see positive inflows in the first half of 2022.
Following variations in the first months of 2022, inflow numbers had become positive again by June. According to the report, 43% of wealth managers believe cryptocurrencies are closely tied to the gold asset class. 33% believe that tech stocks are the most similar asset type to cryptocurrencies.
4%, on the other hand, recognised cryptocurrencies as a standalone asset class.
“Cryptocurrencies are not an asset class. It would be dangerous for the ETF world to take up the cudgel and suddenly start trying to provide access”, remarked Mark Northway, Sparrows Capital’s investment manager, at a recent Funds Europe roundtable.
Over the next five years, 29% of wealth managers predicted that the UK would have the most accommodating regulatory environment in Europe, followed by Switzerland (20%) and Germany (19%), respectively.
By fLEXI tEAM