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AI Emerging as a Growth Catalyst for Digital Assets

Artificial intelligence (AI) is poised to play a decisive role in the evolution of the digital asset sector, according to new global research by Nickel Digital Asset Management, Europe’s leading digital assets hedge fund manager.

RELATED: Digital assets revenue to jump by 33% and hit $80b in 2024

The survey reveals overwhelming confidence among institutional investors and wealth managers that AI will positively shape the future of digital assets, driving innovation, improving risk management, and supporting market maturity.

Strong Investor Confidence in AI’s Impact

The research found near-unanimous agreement on AI’s importance to the digital asset ecosystem:

  • 96% of respondents believe AI will have a positive impact on digital assets, including 26% who expect a very positive effect
  • 94% say AI is important to the future growth of digital asset markets, with 29% rating it as very important

The findings underscore growing investor conviction that AI will be foundational to how digital asset markets evolve.

AI Already Embedded in Investment Processes

AI adoption is no longer theoretical. The study shows it is already deeply embedded in core investment functions:

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  • Nearly two-thirds of respondents have either fully integrated AI (21%) or broadly deployed it (43%) across investment research and risk management
  • Firms surveyed collectively manage approximately $14 trillion in assets, highlighting AI’s rapid transition from experimental technology to critical market infrastructure

This shift signals that AI is increasingly viewed as essential to managing complexity and scale, rather than as a discretionary tool.

Risk Management and Trading Seen as Key Use Cases

As digital asset markets mature and volatility remains a defining feature, investors see AI’s greatest value in managing uncertainty and execution efficiency:

  • 33% say AI will have the biggest impact on risk management and stress testing
  • 31% believe AI’s primary contribution will be in trading execution and market-making, where speed and data processing improve liquidity and pricing
  • Only 9% cite operational efficiency as AI’s main benefit, while 6% point to idea generation

These results suggest institutions are prioritising resilience, control, and market integrity over automation alone.

Barriers to Adoption Remain

Despite strong optimism, the research highlights several constraints that could slow AI adoption:

  • 78% cite data quality and access as the biggest challenge
  • 70% point to concerns around model explainability and governance
  • 40% highlight a lack of internal AI expertise
  • 39% are concerned about regulatory uncertainty, while 36% flag cost as a barrier

These challenges indicate that AI’s full potential in digital assets will depend on clearer regulation, stronger data frameworks, and robust governance structures.

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Industry Perspective: AI Enhances, Not Replaces, Discipline

Commenting on the findings, Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said AI is already reshaping quantitative strategies across the firm’s portfolio.

“AI is expanding the opportunity set not by replacing trader discipline, but by enhancing it. It enables managers to identify more nuanced signals, process information at greater scale, and execute with higher precision—supporting more sustainable alpha generation,” Crachilov said.

Outlook: AI as a Foundation for Market Maturity

The research reinforces the view that AI will be a central driver of digital asset market development. It will help institutional investors navigate volatility, manage risk, and scale participation as the sector continues to mature.

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