2020-9-29 20:04 |
Institutional investors are optimistic about Bitcoin and many are planning to increase their exposure on crypto assets, according to a new survey conducted by Evertas, a worldwide digital insurance firm that protects investors with crypto assets and users of blockchain systems.
Evertas, which manages approximately $78 billion in assets said that in the next five years, more investors will exorbitantly increase their investments in crypto assets. Evertas founder and CEO J Gdanski stated:
“Our research shows that institutional investors are enthusiastic about increasing their exposure to cryptocurrencies and cryptoassets in general but there are clearly many issues regarding the infrastructure that supports these markets that still concern them.”
The survey respondents consisted of various kinds of crypto whales, including individuals with high net worth, traditional financial institutions, hedge funds, custodians, exchanges, and family offices.
Why the Bullish Sentiment on Cryptoassets?Out of the surveyed investors, the research indicated that a whopping 90% believe that other institutional investors will increase their crypto holdings. This was attributed to the forecasted growth expected in the crypto industry in the same period of time.
The survey found out that 84% believe that cryptocurrency infrastructures will improve, making it easier for more people to transact with crypto assets. The growth of the crypto market according to 80% of respondents will increase liquidity to further improve the already fast exchange rate of assets.
The third reason is that the crypto market growth is bound to skyrocket with the entry of more funds managers or institutions companies, according to 76% of respondents. Additionally, another 76% of investors believe that custom-made investment options for crypto assets will increase, making cryptocurrency investments more flexible and attractive.
The data also reflects the dwindling faith in the ability of governments to control rising inflation due to fiscal measures. Up to 46% of investors said that negative interest rates and negative yield bonds will influence many investors to expand their portfolios in crypto assets.
The growing tokenization of crypto assets according to 44% of investors which also depends on national and international regulatory frameworks and the general improvement of custodial services will also influence increased investments in crypto.
In terms of crypto relationships with equities and bonds, 50% of investors prefer the exhibited low correlation especially for those looking at crypto as a secondary store of value.
Over 50% Investors Concerned About Lack of InsuranceThe data stated that while the bullish sentiment on cryptocurrencies is high, 56% of investors are concerned about the limited insurance policies available for digital assets. CEO Gdanski said:
“A lack of adequate insurance for the crypto assets market is clearly top of the list of concerns for many institutional investors, which is perhaps not surprising insurers are only providing the capacity of around $2 billion for a market that is worth between $250 billion and $300 billion.”
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