A recent Q2 research report, commissioned by OKX and authored by The Economist, has shed light on the growing interest in digital assets among institutional investors. The report projects that by 2030, the value of tokenized assets could surpass a staggering $10 trillion.
Currently, asset managers typically allocate a modest 1%-5% of their portfolios to digital assets. However, institutional investors are signaling their intent to ramp up this allocation to approximately 7% by 2027. Notably, the report indicates a growing appetite for investment tools beyond cryptocurrencies, such as pledges, crypto derivatives, and tokenized bonds.
This institutional shift is corroborated by industry experts. Thijs van Boven, Head Trader of Digital Assets at VanEck, notes the increasing demand for digital asset exposure from both asset management and banking clients. He underscores the proliferation of investment tools and products being developed to cater to this demand, citing examples such as ETFs, exchange-traded notes, Web 3.0 blockchain platforms, and even crypto phones.
Ataf Ahmed, Chief Executive of Graphene Investments, echoes this sentiment. He envisions a future where most portfolios will feature some form of digital assets, driven by the tokenization of real-world assets. Ahmed predicts that securities, bonds, and even central bank digital currencies will eventually reside on the blockchain.
While the outlook for digital assets appears promising, the report acknowledges existing challenges. Issues such as inconsistent regulation and fragmented liquidity could pose obstacles to the widespread adoption of digital assets.