Institutional investors continue to see the cryptocurrency market as a promising area and plan to increase the number of digital assets in their investment portfolios over the next three years.
The company Institutional Investor surveyed 140 institutional investors with $2.6 trillion in total assets under management. According to the survey results, 71% of investors believe digital assets are a good investment in the long term.
It is worth noting that all participants in the survey are already investing in digital assets or plan to do so in the next 12 months. Also, 72% of the surveyed investors believe that nothing will be able to demolish the prospects of the cryptocurrency market. At the same time, only 17% of investors expect cryptocurrency prices to rise in the near future, while 83% believe that digital asset prices will remain in the current year’s range or continue to decline for at least another year.
The survey also showed that institutional investors continue to increase the volume of cryptocurrency assets in their portfolios. For example, 62% of investors have expanded their positions in the crypto market over the past year, and 58% of those surveyed plan to increase their investments over the next three years.
Survey participants cited the following as the main reasons for investing in cryptocurrencies:
- improved funding status;
- opportunity for income;
- innovation of the technology;
- the potential for asset value growth in the long term.
As a reminder, institutional investor interest in the crypto market continues to grow. The main factors for buying digital assets are the relatively low correlation with other asset classes and inflation hedging.
Most crypto investors insist on regulatory clarity in the crypto industry. More than half of the investors surveyed (64%) say that developing a regulatory framework for digital assets would increase the global adoption of cryptocurrencies.
It is worth noting that the Institutional Investor survey was conducted from September 21 to October 27, 2022, before the FTX bankruptcy and subsequent events.
