62% of institutions will start investing in crypto within one year: survey

A new survey shows that institutional investors increasingly want to enter the field of cryptocurrency investment in order to increase their income in the long term.

As many as 62% of global institutional investors have zero exposure to cryptocurrencies such as Bitcoin (Bitcoin) In a new survey conducted by European investment manager Nickel Digital Asset Management, they expect to invest in these for the first time within next year.

The survey was released on September 28 and interviewed 50 wealth management institutions and 50 institutional investors in the United States, the United Kingdom, France, Germany and the United Arab Emirates. Nickel conducted an online survey in May and June 2021.

According to the survey results, the main reason for institutional investors to invest in cryptocurrency for the first time is the long-term potential capital increase, and 47% of the respondents cited this factor. 44% of respondents said that as companies and fund managers increasingly invest in cryptocurrencies, people’s confidence in crypto as an asset class is increasing.

41% of respondents also stated that they are willing to invest in cryptocurrency for the first time due to the improved regulatory environment, while 34% of respondents believe that cryptocurrency can be a good hedge against inflation.

“There is no doubt that the crypto asset market is becoming more and more mainstream in the field of institutions and wealth management,” said Henry Howell, Nickel’s head of business development. According to the executive, the increasing institutional adoption rate is driven by a variety of factors, including solid market performance during the Covid-19 crisis, increased corporate participation, and the industry’s continuously improving infrastructure and regulatory framework.

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The new survey further confirms that the encryption industry is increasingly adopted by institutions.According to a report by CoinShares, a European digital asset management company, the institution has Increasing number of cryptocurrency holdings As of mid-September for five consecutive weeks.

In July, a survey published by Nickel showed that the security of encrypted hosting services is The biggest reason to deter institutional investors From the shift to encryption, then the regulatory environment and encryption fluctuations.