Cryptocurrency: The sector continues to attract institutional investors

Are institutional investors interested in cryptocurrencies? If so, how ? Cointelegraph Research conducted its survey to try to get answers to these questions. The survey report brings a synoptic overview of the crypto investment landscape from the professional/institutional side in 2022.

Institutional investors seduced by cryptocurrencies

In this research report, Cointelegraph Research deciphers the penchant of institutional investors for cryptocurrencies. The researchers conducted the survey among 84 major investors based in the United States, Europe and Asia. It shows that crypto ownership has grown in popularity among institutional investors.

The numbers speak for themselves. The report states that 43% of professional investors currently own digital assets. Another 19% plan to launch in the next 12 months. All survey participants have a total of $10.42 billion invested in crypto out of the $316 billion in assets they manage. This represents 3.3% of total assets under management. Another significant figure, the exposure rate exceeds 50% for some investors.

Bitcoin (BTC), a flagship product for investors

Unsurprisingly, bitcoin (BTC) remains the preferred product of institutional and professional investors. Specifically, 94% of them mainly hold bitcoin in their wallet. In total, institutional investors own over 1.39 million bitcoins. Be that as it may, respondents admit to being interested in other crypto assets, particularly ether (ETH). The survey reveals that 75% of institutional investors invest in this crypto asset.

Cryptocurrency is attracting interest from institutional investors in 2022.

Nevertheless, it seems that this trend could be reversed in the coming months. In fact, 62% of investors say ether is on their buy list for the next 12 months. Only 54% say they want to invest in bitcoin. Beyond the main cryptocurrencies, institutional investors are also interested in security tokens. Moreover, 31% of them hold this type of asset and as many have invested in stablecoins.

The growing number of institutional investors

Institutional investors have become bigger users of cryptocurrencies. Demand is expected to increase in coming years, although regulatory uncertainty tends to deter many investors. But it is clear that these investors are increasingly interested in cryptos. BlackRock and its approximately 10,000 billion dollars in assets, Goldman Sachs (a world leader in finance) or Bridgewater Associates (one of the world leaders in alternative investment funds) for example, have all taken the plunge.

What’s more, the researchers detected no decline in interest from institutional investors. On the contrary, many of them are very bullish on blockchain-related assets. At this rate, companies and other institutions (public, private, governmental) not involved in cryptos will be in the minority. the report entitled “Institutional Demand for Cryptocurrencies Global Survey 2022” provides all the details of this inventory.

Many funds and institutional investors are entering the blockchain space. The growth of portfolios and the crypto activity of these investors continue to gain momentum, despite this bear market persistent. Although their investments are currently limited, they are likely to strengthen their position, especially when governments introduce regulatory frameworks.

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