A survey by American asset manager State Street reveals that digital assets and semi-transparent active ETFs are going to stay.
Of the asset managers and asset owners polled in the study, 38% said that they will increase their allocation to digital assets while 45% said that their allocation will remain the same.
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Just 6% of the respondents said that they do not have digital asset investments.
Besides, 69% of the largest firms surveyed said that they will increase digital asset allocations.
Forty-five percent of the respondents also believe that the tokenisation of traditional assets will be a significant market disruptor in the next five years.
However, the respondents had inhibitions about tokenised assets, with 55% citing that their risks could hamper institutional adoption on a broader scale.
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By GlobalDataAccording to 4% of the respondents, tokenisation did not provide any benefits.
Moreover, 45% of the respondents expected a bitcoin or other virtual currency ETF to get the go-ahead from regulators and launch next year.
When asked about key trading technology investments for 2020, the respondents cited blockchain/DLT, AI/machine learning, robotic process automation, as well as natural language processing.
Sixty-five percent of the respondents believed that DLT could boost financing solutions in the coming days, while 59% held a similar view about AI technology.
Meanwhile, around half (47%) of the respondents believed semi-transparent ETFs to have an integral role in their portfolio strategy in the coming days.
Meanwhile, regarding the global markets outlook for the coming year, 32% of the respondents were bearish.
State Street Global Markets business unit global head Nadine Chakar said: “The survey supports what we have anecdotally believed for some time – the future is bright for active equity ETFs, as well as firms seeking to outsource trading activities and increase allocations to digital assets-related investments.
“It’s an exciting time for technology and innovation in the industry, and ultimately investors will benefit from new technologies and a wider range of choices for constructing portfolios.”
