Financial services company Brown Brothers Harriman (BBH) recently released the results of a study. This is its 2023 survey of global ETF investors. As part of the said study, the company interviewed 325 institutional investors, financial advisors and fund managers. The professionals surveyed are spread across the US, UK, Europe and China. The survey highlights the evolution of institutional interest in cryptos.
Institutional adoption of crypto ETFs has declined
The bear market is currently raging, with the risk that it will continue throughout this year. Despite everything, institutional interest in crypto is not waning: on the contrary, it is increasing. This was indicated by the recent BBH survey. The majority of asset managers surveyed by the firm admitted to being “extremely interestedby crypto ETFs. In fact, almost three-quarters of institutional investors were very interested by crypto ETFs. However, only a quarter of respondents intend to increase their investment in crypto ETFs.
BBH reported that in the past year there were more institutional investors willing to buy more crypto ETFs. At the time, 33% of investors surveyed were ready to buy more crypto exchange-traded funds. Also, the BBH survey shows that nearly half of institutions want to add crypto ETFs to their portfolios. 48% of investors want to diversify their investments with crypto ETFs and cryptos.
What role could crypto regulation play?
According to the BBH report, institutional adoption of crypto ETFs could increase with clearer regulation. This last would provide a safety net for institutions during crypto transactions. BBH cited the MiCA regulation as an example of a clearer regulatory framework for cryptoassets.
Furthermore, the company has explained why there is a rise in institutional interest in crypto ETFs. It turns out that fund managers start by coming to terms with the inevitable volatility of the crypto market. But, many institutions are still struggling to get started in the sector because of this volatility.
The BBH survey comes a few months after a study by GlobalData addressing a similar topic. In its report published in October 2022, GlobalData had shown that wealthy investors are not fond of crypto ETFs.
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