‘Consistently Strong’ Institutional Crypto Demand Stayed Despite Price Slump – WisdomTree
Demand for WisdomTree's crypto-backed funds has stayed “consistently strong” through the price slump this year, with professional money managers in Europe among the key players allocating to the space, this asset management firm and exchange-traded fund (ETF) provider has said.
Will Peck, Head of Digital Assets at WisdomTree, told Cryptonews.com in an interview on Tuesday that,
“We’ve seen demand [for crypto-backed ETFs] being pretty consistently strong […] It shows that asset allocators are thinking about [crypto] like any other asset, trying to construct portfolios and allocating to it.”
Peck explained that investments into the digital asset space are the result of asset managers realizing that crypto represents an uncorrelated asset class that has a potential for “outsized returns.”
Europe – which is WisdomTree’s main focus area for ETFs – is a “pretty institutional market” with many multi-asset managers and family offices active, and “crypto fits their need,” Peck said. With falling prices of both stocks and bonds, crypto as an asset class “certainly has an appeal,” he added.
“I think it’s very encouraging in terms of adoption in the institutional space – you’re seeing people not just trading momentum in the same way – the retail FOMO [fear or missing out] trade – but people are just saying ‘hey, this makes sense’ – whether it is 2, 5, 10 percent of my portfolio – I’m going to continue to allocate according to that,” WisdomTree’s digital asset head said.
WisdomTree’s cryptoasset funds saw inflows of USD 2m in April and USD 12m in March of this year. That compares to a net outflow of USD 25m in April and an inflow of USD 30m in March last year, information published by the asset manager shows.
Further, Peck stated that the
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