Why Digital Asset Fund Managers Remain Bullish Despite U.S. Election Fears

If you've been scrolling through Crypto Twitter lately, you might be convinced that a Democratic victory in the upcoming presidential election spells doom for the crypto industry over the next four years. Social media often amplifies fears without providing the institutional lens. Contrary to the prevailing sentiment online, the institutional side of the digital assets market tells a different story.

At CIG, we’ve been conducting monthly surveys among liquid fundamental fund managers who focus on liquid digital assets. Our latest report, featuring insights from over 50 managers, reveals some intriguing expectations surrounding the election and its potential impact on the crypto market.

Let’s take a look at two key findings that showcase the optimism among fund managers.

1. The Elephant in the Room: The Impact of a Democratic Win on Digital Assets

When asked about the potential impact of a Democratic victory in the upcoming presidential election, the majority of managers (65%) acknowledged that while it's not ideal, it won't cripple the industry. Interestingly, 20% think it doesn't matter, asserting that positive regulatory changes will occur regardless of who wins. Only 12% believe it would be catastrophic to the asset class as a whole.

2. Overall Market Sentiment Remains Bullish Through the Election

Despite prediction markets suggesting that increasing odds of a Democratic win should make fund managers bearish, the reality is quite the opposite. On a three-month timeframe, none of the surveyed managers expect the market to be lower. About 10% anticipate it will be "flat or range-bound," while a substantial 70% believe it will be higher. An optimistic 20% predict the market will be "much higher." This data indicates that the institutional buy-side remains highly optimistic about the near-term future of digital assets.

So What?

Our goal at CIG is to bring real institutional insights into the digital asset space. While social media may paint a bleak picture, the data suggests that fund managers remain confident in the resilience and growth potential of the digital asset market, regardless of the election outcome. Since we’re all closely monitoring key events like the presidential election and their implications for the industry – it’s important to have the most up to date information.

If you're interested in diving deeper into market expectations, manager risk appetite, event predictions, or fund positioning, feel free to reach out to us. We're here to provide you with the insights you need to navigate the ever-evolving digital asset landscape.

You can follow Crypto Insights Group here on Twitter and get exclusive access plus insights to the world’s leading crypto funds with CIG’s proprietary data here.