- Investors expect Trump’s administration to drive crypto growth through favorable regulations and key appointments.
- Market volatility persists amid election uncertainty, but regulatory clarity efforts signal optimism for crypto.
Institutional investors and wealth managers are showing growing optimism about the future of digital assets under President Donald Trump’s administration.
A recent study by Nickel Digital Asset Management, a London-based hedge fund, reveals that professionals managing around $1.1 trillion in assets across the U.S., UK, Germany, Switzerland, Singapore, Brazil, and the UAE anticipate a more favorable regulatory environment.
Published on the 5th of March, the findings reflect strong confidence that Trump’s leadership will drive crypto sector growth through strategic policy changes and key appointments.
Survey findings
The survey highlighted,
“88% expect more favourable regulation of the sector and 92% believe President Trump’s administration will have a positive effect on the digital asset regulatory landscape.”
Amidst such optimism, investor sentiment toward Trump’s policies remains divided, particularly as his tariff plans previously triggered a sharp downturn in the crypto market, leading to Bitcoin’s [BTC] steepest decline in months.
However, market confidence rebounded following his announcement of a U.S. Crypto Strategic Reserve, pushing digital assets back into positive territory.
As of the latest update from CoinMarketCap, the global crypto market cap has climbed to $3.01 trillion, reflecting a 2.12% daily increase.
That being said, industry professionals too see leadership appointments as a crucial factor in shaping the sector’s trajectory.
According to Nickel Digital’s research, over 80% of institutional investors believe that David Sacks’ appointment as a dedicated Crypto Czar will significantly influence the industry’s growth.
These signals heightened expectations for regulatory clarity and institutional adoption.
Highlighting the role of U.S. government support, the researchers further noted that,
“Institutional investors and wealth managers recognizing the role that a supportive U.S. government plays in the digital assets world – almost all (95%) say the U.S. government being positive is important to the development of the sector with 27% saying it is very important.”
Challenges persist for crypto regulations
While optimism exists about Trump’s impact on crypto, election-related uncertainty has caused significant market turbulence.
Nickel Digital’s research shows that 55% of respondents reported increased volatility, with 36% citing instability in digital asset markets.
Additionally, investment activity has slowed, with 42% observing delays in U.S. investments and 41% noting similar caution internationally.
Remarking on the same, Anatoly Crachilov, CEO and Founding Partner at Nickel Digital said,
“The U.S. presidential election was billed by some as the crypto election and that has been recognized by institutional investors and wealth managers.”
He also pointed to immediate regulatory shifts and stated,
“The immediate impact is expected to come in the shape of more favorable regulation which we have already started to witness as the SEC drops cases against Coinbase, Robinhood, Uniswap and more.”
What’s more to it
Thus, as the regulatory landscape continues to evolve, along with SEC’s upcoming Crypto Task Force meeting on the 21st of March, a crucial step toward greater clarity has already begun.
Hence, with these regulatory advancements coinciding with Trump’s pro-crypto stance, the outlook for digital assets appears increasingly optimistic.
However, how effectively these policies will shape the industry’s future remains to be seen.
