Survey shows 26% of institutional investors intend to increase their cryptocurrency holdings

Institutional investors such as pension funds, wealth managers and family offices believe the cryptocurrency space will continue to expand and they plan to buy more.

A study from cryptocurrency insurance company Evertas shows that more than 25% of surveyed institutional investors, which collectively manage nearly $80 billion in assets, are planning to increase their holdings of digital assets.

A previous survey by digital asset management company Grayscale also showed that institutional investors' interest in the crypto field has increased recently, and Evertas' survey indicates that this trend will accelerate further.

The company’s research showed that 26% of respondents believed that pension funds, family offices, insurance companies and sovereign wealth funds would “significantly” increase their cryptocurrency purchases. Another 64% responded that they would only “slightly” increase their cryptocurrency purchases.

Most people linked the market’s growing interest in digital assets to improvements in the market’s regulatory infrastructure, with 84% responding that greater clarity in legislation would attract more conservative investors to the space.

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 the market to flourish in the next five years by attracting more investment and increasing liquidity.

Despite the optimistic survey results, some institutional investors continue to express certain concerns about the cryptocurrency space. Most respondents said that their biggest concern is the lack of insurance in the digital asset space.

54% of respondents were “very concerned” about the working practices and compliance procedures of firms in the industry that provide services to institutional investors, with other issues they were concerned about including “the quality of custody services, the availability and quality of trading platforms and reporting facilities”.

“Our research shows that institutional investors are generally keen to increase their exposure to cryptocurrencies and crypto assets, but it is clear that there are still many issues that concern them about the infrastructure supporting these markets,” said J. Gdanski, founder of Evertas.

American financial services giant Fidelity Investments previously published another report stating that 36% of institutional investors own Bitcoin or other tokens.

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AuthorXiu Mu

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