Institutional investors, such as pension funds, wealth managers, and family offices, believe the cryptocurrency field will keep expanding and they plan to purchase more. Let us take a look at what else did the survey found out:
Survey: Institutions want to invest in cryptocurrencies
A recent study compiled by a cryptocurrency insurance company revealed that over 25% of surveyed institutional investors, who collectively manage nearly $80 billion of assets, are planning to increase their digital asset holdings.
Although the interest from institutional interest has been rising lately, exemplified by the large digital asset manager Grayscale, Evertas’ survey suggested further accelerations.
The study compiled by the company highlighted that 26% of all participants believe that pension funds, family offices, insurers, and sovereign wealth funds will “dramatically” increase their cryptocurrency purchases.
Another 64% answered that they expect a “slight rise.” The majority linked the growing interest towards digital assets with improving regulatory infrastructures for the market. 84% responded that the more clear legislations are instituted, the more conservative investors will be allured to join the field.
80% of the participants indicated that the cryptocurrency market is still relatively small compared to traditional financial sectors such as stocks and bonds. Nevertheless, they expect the market to blossom in the next five years by attracting further investments and greater liquidity.
Remaining Concerns Among Institutional Investors
Despite the survey’s optimistic findings, some institutional investors continue to display specific concerns regarding the cryptocurrency field. The most chosen answer (56%) showcased that they are mostly worried about the lack of insurance cover for digital assets.
It’s worth outlining another report from the US multinational financial services giant Fidelity Investments on the matter. It asked institutional investors regarding their exposure to cryptocurrency assets, and 36% noted that they own Bitcoin or other tokens. Maybe it is the right time for you to enter the field as well. Just remember the golden rule of investing in cryptocurrencies: Invest only as much as you can afford to lose.