Institutional Perspective

Allocation to Digital Assets in an Institutional Portfolio

Information for Accredited Investors and Financial Advisors

Institutional perspective

New Opportunities for Traditional Asset Managers
Throughout portfolio construction, institutional investors are seeking to improve the efficiency frontiers of their portfolios. This is usually achieved through diversification into uncorrelated assets. Statistical evidence shows that incorporating a small proportion of digital assets delivers a significant positive portfolio effect, without material impact on the portfolio risk profile. The following statistics of the most recent 7-year period highlight the impact of digital assets of a balanced 60/40 portfolio.

Impact of Digital Assets Allocation to an Institutional Portfolio

Simulated Portfolio Performance – with Daily Rebalancing of Targeted Allocation
December 31, 2012 – December 31, 2019
Basic 60/40 portfolio composition:
• 60% S&P500 Total Return Index
• 40% US Treasury Total Return Bond Index


Source: Federal Reserve Bank, CoinDesk

We will be glad to commit time to help you explore how allocation to this new asset class can support your investment objectives, while maintaining a prudent level of risk exposure.
We will be glad to commit time to help you explore how allocation to this new asset class can support your investment objectives, while maintaining a prudent level of risk exposure.

How representative is the 7-year timeframe of December 2012 to December 2019?

The standard linear graph does not reveal the full picture.
$19 873
18/12/2017
$3 122
15/12/2018
Crypto Winter
Collapse -84%
Upcoming
Recovery
Appears as a Flat Development
Shortcoming of Linear Graph
BTC/US$ Price, Linear Graph
Source: Binance, CoinMarketCap
BTC/US$ Price, Linear Graph
When reviewed in logarithmic scale, Bitcoin's historic price reveals two major crypto winters of 2013 and 2017. Nonetheless, BTC managed to deliver strong positive results over the cycle.
Full recovery - 3.5 years
Upcoming
Recovery
14 Months
-84%
$1 154
Dec 2013
$190
Jan 2015
$19 783
Dec 2017
12 Months
-84%
BTC/$US, Logarithmic Scale
$3 122
Dec 2018
3 Years
x105
1 Year
x90
BTC/US$ Price, Linear Graph
Apr
2011
Apr
2012
Jul
2015
Nov
2015
Jan
2018
Sep
2018
Apr
2019
Jul
2019
+76%
+6%
+5%
+12%
+55%
+14%
-19%
-10%
-18%
-13%
-10%
-36%
-7%
SPX correction time & depth
BTC performance during corretion
Uncorrelated Source of Returns
-6%
-12%
-20%
Uncorrelated Source of Returns

Invest with Nickel

To better understand how Nickel can work with you and your clients, please get in touch.
Invest directly into Nickel's Investment Funds
Nickel's platform is open for professional investors with a minimum investment amount of
$1 million. This minimum restriction is applicable to both Market-Neutral Arbitrage and Digital Gold funds. When requesting fund information, Prospective Investors will be kindly asked to confirm their sufficient knowledge and capacity to assess, as well as carry, investment risks associated with crypto space.

We also require a self-certification that your investment with us would not exceed 10% of your AUM or Total Net Worth. As a good practice, Nickel would recommend that allocation to digital assets be kept within 1% to 3% of your investment portfolio to ensure you are able to maintain a sound financial position at times of market volatility. Fund documentation can be requested on reverse solicitation basis by signing an online Reverse Solicitation Request. Please kindly complete the form below to initiate the dialogue with our team.
Work with your Financial Advisor
Many advisors are increasingly getting questioned on the topic of cryptoassets by their clients. We are willing to commit time to help you get familiarised with the digital assets space and explore how allocation to this new asset class can help meet the investment needs of your clients.

For investors looking to allocate less than $1 million, we recommend discussing the opportunity with your financial advisors, who should be able to advise on various options on how to access the digital asset market. You may also ask your advisor to get in touch with us, using the contact form below. We will be glad to commit time to help you explore how allocation to this new asset class can support your investment objectives, while maintaining a prudent level of risk exposure.

This form will provide you with the relevant investment documentation.

Please complete and submit to proceed.