A survey carried out by a Canadian firm reveals that the interest of Canadian institutional investors in cryptocurrencies has experienced a strong explosion over the last two years. Estimated at 29% in 2021, the proportion of institutional investors exposed to cryptos in Canada increased to 75% in 2023. The firm's executives outline the elements that justify this trend.
Canada, the hub of cryptos
From 2021 to 2023, Canada experienced a strong explosion in the interest of institutional investors in cryptocurrencies. This is what we learn from the “Institutional Adoption of Cryptoassets” report published by the accounting firm KPMG Canada on April 24.
According to The report39% of institutional investors are directly or indirectly exposed to cryptocurrencies in 2023 compared to 31% in 2021. Likewise, the number of institutional investors having allocated at least 10% of their portfolios to cryptocurrencies was 33.33% in 2023, compared to 20% in 2021.
When it comes to financial services companies, the survey found that 50% of them offer crypto services in 2023, up from 41% in 2021. Kunal Bhasin, partner and head of crypto at KPMG Canada, explains why the Institutional interest in cryptoassets saw such a jump in 2023.
Cryptos are establishing themselves as hedging assets in Canada
Kunal Bhasin attributes the increase in institutional interest in cryptos in Canada in 2023 to the increase in the inflation rate and the surge in US debt. He notes that Canadian institutions are looking for alternative assets that can serve as a store of value and provide a hedge against inflation.
The expert also specifies that this trend was favored by a number of factors. He cites, among other things, the maturation of crypto markets and custody infrastructure and the increase in demand for crypto services after the trigger caused by BTC ETFs.
The emergence of Canada in the crypto ecosystem is not, however, completely independent of the regulatory parameter. Indeed, several crypto companies had to move their activities from the USA to Canada in 2023 to escape the regulatory pressure that prevailed in the USA.
Even the famous Coinbase had expanded its presence in Canada to take advantage of Canadian regulations that are less strict than those of the USA. The maturation of the cryptocurrency market continues slowly and surely.
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