A survey of fund managers, institutional investors, and financial advisors from the U.S., China, and Europe found that about 48% are “extremely interested” in crypto-themed Exchange Traded Funds (ETFs) and ready to add them to their investment portfolios in 2023.
The survey conducted by Brown Brothers Harriman (BBH) showed that institutional investors’ interest in the crypto market remains strong. Thus, about 48% of those surveyed are ready to add crypto ETFs to their investment portfolios in 2023.
The BBH survey was conducted among 325 institutional investors, fund managers, and financial advisors from Europe, the United States, and China. Institutional investors from China (58%) and the United States (55%) expressed the highest interest in exchange traded funds based on cryptocurrency assets. European investors, on the other hand, are more skeptical about crypto ETFs — only 29% of them are ready to invest in this kind of funds in 2023.
It’s worth noting that despite the rather high interest of institutional investors in crypto funds, their “appetite” for such investments has obviously decreased. For example, only a quarter of respondents want to increase their investments in crypto ETFs over the next 12 months. This indicator was 6% lower than last year.
BBH analysts believe that the main factors influencing the further growth of institutional investors’ interest in crypto funds are:
- The ability to diversify investment portfolios.
- The adaptability level of investors to the high volatility of crypto ETFs.
- The development of a regulatory framework for the cryptocurrency sector, which can provide an additional level of “comfort” for investors.
Institutional investors’ confidence in cryptocurrencies skyrocketed in 2022, and they view digital assets as a good long-term investment.
Read about how high-risk crypto-assets gained attention of institutional investors and their future prospects in the special article by CP Media.
