According to the Q2 research report prepared by OKX and written by The Economist, digital assets are rapidly gaining interest among institutional investors and their market value is expected to exceed $10 trillion by 2030.
At the time of writing this article, the total market value of the cryptocurrency market is approximately $2 trillion.
The report notes a growing trend in asset allocation towards digital assets and predicts that institutional investors will increase their digital asset allocation from the current 1%-5% to 7% by 2027.
The report notes that institutional investors are particularly interested in diversifying their portfolios beyond traditional cryptocurrencies into new investment vehicles, including mortgages, crypto derivatives, and tokenized bonds. However, the report also warns that challenges such as inconsistent regulation and fragmented liquidity could hinder the widespread adoption of digital assets.
The increasing interest of investment firms and banking clients in digital assets is giving rise to a variety of new investment instruments and products. These include exchange-traded funds (ETFs), exchange-traded notes, blockchain platforms powered by decentralized Web 3.0 technology, and even crypto phones. Thijs van Boven, head trader for digital assets at VanEck, noted the increasing demand for such products and said that their role in meeting the needs of the changing market is important.
Ataf Ahmed, CEO of Graphene Investments, said in his statement:
“As real-world assets become tokenized, the majority of portfolios will increasingly include some form of digital asset. The majority of securities, bonds and central bank digital currencies will eventually reside on the blockchain.”
*This is not investment advice.
