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.
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.
54% were “very concerned” about the working practices and compliance procedures of companies working in the sector who supply services to institutional investors. Further below, the participants ranked other potential issues, including the “quality of custodial services, the availability and quality of trading desks, and reporting facilities.”
“Our research shows that institutional investors are enthusiastic about increasing their exposure to cryptocurrencies and crypto-assets in general, but there are clearly many issues regarding the infrastructure that supports these markets that still concerns them. These certainly need to be addressed if the full potential of investment from institutional investors in crypto assets is to be realized.” – commented Evertas Founder and CEO J. Gdanski.
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.