Unlocking Opportunities: 21% of Private Market Investors Dive into Crypto and Digital Assets, Says Northern Trust
In today’s ever-evolving financial landscape, the focus on alternative investments has never been more pronounced. According to Northern Trust’s report, ‘Asset Owners in Focus: Global Asset Owner Peer Study 2025’, asset owners are navigating challenges such as rising market volatility, changing regulations, and rapid technological advancements.
Key Findings from the Global Asset Owner Peer Study 2025
One of the standout findings from the study is that 21% of asset owners allocating to private markets have invested in cryptocurrencies and other digital assets. This trend highlights the growing acceptance of digital currencies within traditional investment portfolios. Other significant investment categories include:
- Private Debt: This has become a staple within many institutional portfolios.
- Real Estate: Continues to attract substantial interest from investors.
- Private Credit and Direct Lending: Remain among the most favored options.
The Rise of Alternative Investments
The study reveals that a remarkable 86% of respondents actively invest in private markets. The investment landscape is further diversified with:
- 68% engaging in hedge funds and absolute return investments.
- 42% favoring equities.
- 27% allocating to fixed income.
Despite these figures, the allocation to alternative investments is on the rise, with private market assets accounting for 13% of the average portfolio. Furthermore, 86% of portfolios now include some form of private assets.
Challenges Facing Asset Owners
The survey indicates that asset owners are grappling with several investment challenges, which include:
- Changes in interest rates
- Geopolitical and domestic political instability
- Regulatory fees and climate change
Notably, liquidity risk has been identified as the most significant risk metric, a top concern for 54% of respondents.
Insights from Industry Leaders
Melanie Pickett, head of asset servicing for the Americas at Northern Trust, emphasizes that today’s asset owners are managing sophisticated portfolios amid economic and geopolitical uncertainty. She notes, “Our data provides valuable insights for North American asset owners, helping them benchmark strategies and understand where peers are allocating resources.”
James Wright, head of asset owners for EMEA at Northern Trust, highlights the increasing recognition of technology’s value in mitigating operational and investment risks. He states, “As regulatory pressures intensify, asset owners are enhancing their decision-making capabilities through improved data management.”
Angelo Calvitto, head of Asia-Pacific at Northern Trust, points out that many asset owners are utilizing service providers to enhance operational efficiency. “This trend aligns with the region’s growing interest in technology adoption to streamline processes,” he explains.
For further insights on the evolving landscape of asset ownership, you can explore additional resources at Investopedia and Morningstar.
