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Institutional investors such as pension funds, wealth management companies, and family offices believe that the cryptocurrency sector will continue to expand, and they plan to buy more.
A study from Evertas, a cryptocurrency insurance company, shows that more than 25% of surveyed institutional investors are planning to increase the number of their digital assets. In total, these institutional investors manage nearly $80 billion in assets.
Earlier, a survey by digital asset management company Grayscale also showed that institutional investors’ interest in the encryption field has recently increased, and the Evertas survey shows that this trend will accelerate further.
The company’s research shows that 26% of respondents believe that pension funds, family financial institutions, insurance companies and sovereign wealth funds will “significantly” increase their purchases of cryptocurrencies. Another 64% responded that they would only increase their purchases of cryptocurrency “slightly”.
Most people associate the market’s growing interest in digital assets with improvements in market regulatory infrastructure. 84% responded that the clearer the legislation, the more conservative investors will be attracted to join the field.
80% of respondents said that the cryptocurrency market is still relatively small compared to traditional financial sectors such as stocks and bonds. However, they expect that this market will flourish in the next 5 years by attracting more investment and increasing liquidity.
Despite the positive results of the survey, some institutional investors continue to express certain concerns about the cryptocurrency sector. Most interviewees said that they are most worried about the lack of insurance in the field of digital assets.
54% of respondents are “very concerned” about the working practices and compliance procedures of companies in the industry that provide services to institutional investors. Other issues related to them include “quality of custody services, availability and quality of trading platforms, and reporting facilities “.
J. Gdanski, founder of Evertas, said, “Our research shows that institutional investors are generally keen to increase investment in cryptocurrencies and crypto assets, but it is clear that there are still many issues with the infrastructure supporting these markets that cause them to worry.”
The US financial services giant Fidelity Investments previously published another report in which 36% of institutional investors own Bitcoin or other tokens.
Author Xiu Mu