Nickel Digital Asset Management, a UK-based crypto fund, released a survey of 100 wealth management institutions and global institutional investors to identify the biggest investor concerns related to crypto.
The survey respondents are from the United States, France, Germany, the United Arab Emirates and the United Kingdom, and they have a total of US$275 billion in assets under management.
The survey was conducted online from May to June 2021 and found that institutional investors have low confidence in encryption security. 76% of respondents said that concerns about the security of custodial services are a factor preventing them from investing in encryption.
Respondents also believe that the regulatory environment is a major obstacle. Other important issues include the lack of transparency and volatility, and the lack of reputable fund managers who provide crypto investments.
Anatoly Crachilov, co-founder and CEO of Nickel Digital, stated that although the industry has “made very strong progress in this regard,” institutional concerns about cryptocurrency custody and security still exist. Crachilov said that encryption service providers are increasingly deploying complex encryption solutions, such as distributed keys and multi-party computing vaults, and traditional financial institutions have also begun to get involved in such services.
“We are now seeing Fidelity, Bank of New York Mellon and State Street enter the market, thereby further strengthening the market infrastructure. All of this has increased the level of confidence in the industry and has led to an increase in the level of confidence in this rapidly growing asset class. The configuration keeps increasing,” Krachilov said.
The new survey is published on the Australian Stock Exchange Warnings related to hosting services In centralized cryptocurrency exchanges, investors are warned against cyber security risks in the form of hacker theft.