Since the beginning of the coronavirus pandemic, 43 per cent of institutional investors and wealth managers say they have a more positive view of cryptocurrencies, while 35 per cent say it’s improved slightly.

The research, which was commissioned by London-based Nickel Digital Asset Management Ltd., found 78 per cent of respondents now have a positive or constructive view of Bitcoin, with only nine per cent saying their perception of the cryptocurrency is negative. The corresponding figures for Ethereum were 77 per cent and seven per cent, respectively.

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The survey asked respondents to choose their main reasons for developing a more positive view of cryptocurrencies over the past two years. More than half (58 per cent) cited strong capital growth, while 53 per cent said it’s because these assets have shown attractive diversification benefits when compared to mainstream asset classes. Fewer than half (47 per cent) cited improving custodial services and 41 per cent cited growth in market capitalization and its positive impact on liquidity.

“Many cryptocurrencies have performed well since the coronavirus crisis started,” said Fiona King, head of institutional sales at Nickel Digital, in a press release, noting the value of Bitcoin and Ethereum have increased by 460 per cent and 1,812 per cent, respectively, since Jan. 1, 2020.

“The crypto and digital markets have also matured a great deal, providing greater custodial services and liquidity, for example. There is still much more to be done — especially in the area of regulation — but the market will continue to evolve and grow. And, as this happens, long-term perceptions of crypto and digital assets will improve even further and professional investors will increase their allocation to them.”

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