Report: Institutional Investors Plan to Accumulate More Cryptocurrency Assets
Institutional investors do not seem to be backing down from cryptocurrency yet, as many of the big money spenders are bracing up to acquire more crypto assets.
UK and US Institutional Investors Want More Crypto
According to a report from crypto insurance startup Evertas, institutional investors in the U.S. and UK are looking to inject more funds into cryptocurrency. The report comes from a survey conducted by the research company Pureprofile back in July.
Based on the report, the survey sampled 25 institutional investors from the UK and another 25 from the U.S. About 90 percent of the respondents stated that they could increase their crypto investments in the next five years.
Out of the 90 percent, 64 percent of corporate institutions – insurers, sovereign wealth funds, pension funds, and family offices – revealed they would slightly increase their crypto holdings. Conversely, 26 percent of surveyed investors declared they would pump money into various digital assets.
The increased appetite for cryptocurrency by institutional investors is happening for two reasons. The survey showed that 84 percent of investors expected a robust crypto regulatory framework, while 80 percent of respondents are looking forward to increased liquidity.
However, while most of the respondents were positive about the growing crypto industry, some of the surveyed institutional investors raised some issues.
According to Evertas’ report, 56 percent of surveyed investors worried about the absence of insurance for cryptocurrency investments. Another 54 percent were worried about the compliance measure in place by platforms servicing institutional investors.
Raymond Zenkich, president and COO of Evertas commented on the insurance issue, stating:
“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 when insurers are only providing capacity of around $2 billion for a market that is worth between $250 billion and $300 million.”
However, Evertas believes that it is positioned to tackle the problem, with Zenkich saying “We are working closely with the insurance community to address this issue.”
Cryptocurrency Still Attracting Big Money Spenders
Evertas’ report from a survey joins the list of surveys carried out regarding institutional interest in cryptocurrency.
As reported by BTCManager back in June, a survey by Fidelity Investments revealed that more institutional investors were accumulating crypto.
While the Evertas report cited lack of insurance as a major problem for big investors, the Fidelity survey noted that crypto’s volatility hindered more adoption of cryptocurrencies.
The nascent industry continues to see big spenders enter the industry. Microstrategy back in August bought $250 million worth of BTC. The company further increased its BTC stash, following the accumulation of another 16,796 Bitcoins. Microstrategy also revealed that Bitcoin was the company’s primary reserve asset.