Since the start of the bear market, there has been a big belief that investors are pulling out of the markets. Coinbase conducted a study to clarify the situation and enlighten stakeholders on the issues.
The majority are increasing their investments in cryptos
Coinbase conducted a investigation on the outlook for the crypto market, by interviewing 140 institutional investors. The goal of this initiative is to offer a reading of market sentiment to the crypto community. The American exchange also aims to draw up the outlook and answer various questions from stakeholders on the future. For this, the exchange looked at the exposure of investors, despite the difficult times in the market.
The works have show that 62% of investors already present in the crypto markets, have increased their allocations in the last 12 months. Only 12% have reduced their investments. We also learn that for the future, 58% of investors plan to increase allocations over the next three years. These figures contradict the persistent rumors about the industry and the risky statements of crypto skeptics. According to these, there is a big wave of divestment and disinterest in cryptos.
“It proves that institutional investors have continued to take a long-term view of the crypto asset class, even as prices have fallen”Coinbase wrote.
Additionally, Coinbase’s survey results tell us that approximately 59% of investors are currently using or planning to use a buy-and-hold approach, according to the survey. Moreover, only 7.9% of institutional investors see the price of cryptos rising in the next 12 months.
Officials of the crypto company assure that the investigation was initiated and carried out before the occurrence of the FTX affair.
Additionally, survey participants place regulatory compliance as paramount when choosing a crypto partner, followed by security and trust. A state of affairs that stems from the collapse of the LUNA ecosystem in the first half of the year. Remember that this event led to a domino effect on cryptos and NFTs.
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