87% of institutions expect ETP growth to boost active crypto demand

87% of institutional investors expect the growth of crypto exchange-traded products to increase demand for active managers and hedge funds. This figure comes from a global survey conducted by Nickel Digital Asset Management. The research covered more than 200 senior executives at institutional investors and wealth managers.

The findings suggest that ETPs are normalizing digital assets in standard portfolio allocations. 84% of respondents agree that this normalization will occur within three years. 26% strongly agree with this assessment. The data indicates a shift toward treating digital assets as a core component of diversified portfolios.

Institutional adoption rates remain high

55% of participants say they are very likely to use crypto ETPs for the first time in the next two years. 19% report that they are already using these products. 23% say they are quite likely to invest in them. Only 3% stated they were unsure or unlikely to use ETPs.

Respondents expect net flows into digital asset ETFs to rise. 81% predict an increase in net flows over the next 12 months. 19% anticipate dramatic increases in this period. The survey covered the US, UK, UAE, Germany, Switzerland, France, Italy, the Netherlands, Singapore, Brazil, and the Nordics.

Regulatory uncertainty remains a barrier

52% of respondents identify regulatory uncertainty as the biggest barrier to increased institutional use. 44% express concern that ETFs do not solve underlying market or custody risks. 40% worry about liquidity and trading costs. These factors continue to limit broader adoption despite positive sentiment.

28% cite easier investment committee or board approval as the main reason for using crypto ETPs. 21% value them for liquidity and transparency. 20% point to easier operational and custody arrangements. 74% say fees or total expense ratios are critical or very important when selecting funds.

Regional growth expectations are split

Respondents are divided on which region will see the fastest institutional asset under management growth. 27% select the US. 27% select Europe. 26% select the Middle East. 11% choose the UK. Multi-asset crypto baskets are expected to see the most growth in institutional digital assets over the next two years.

45% of respondents select multi-asset crypto baskets as the fastest-growing category. 43% pick actively managed digital asset ETFs. 39% choose staking or yield-aware digital asset products. 38% select tokenized real-world asset funds. According to GN markets/crypto (en-US), these trends highlight the diversification of institutional strategies. The data underscores a move beyond single-asset exposure toward complex, multi-asset structures.