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Institutional Investors Are Buying Through Crypto Winter: A Survey

by SuperiorInvest

A survey of institutional investors suggests their cryptocurrency allocations have increased over the past year, despite the industry going through a long crypto winter.

Sponsored by Coinbase survey published on Nov. 22, and conducted between Sept. 21 and Oct. 27, found that 62% of institutional investors investing in cryptocurrencies increased their allocations over the past 12 months.

In comparison, only 12% reduced their exposure to cryptocurrencies, suggesting that most institutional investors may be bullish on the digital asset over the long term, even as prices fall, according to the survey.

More than half of the investors surveyed said they currently or plan to take a buy-and-hold approach to cryptocurrencies, with the belief that cryptocurrency prices will remain stable and move over the next 12 months.

Additionally, 58% of respondents said they expect to increase their portfolio allocation to cryptocurrencies over the next three years, with nearly half “strongly agreeing” that cryptocurrency valuations will increase in the long term.

As widely reported earlier, regulatory uncertainty was once again the biggest factor investors were concerned when considering whether to invest in cryptocurrencies, particularly among those planning to invest in the next 12 months, where 64% noted concerns.

Coinbase’s representative sample of the survey consisted of 140 institutional investors based in the United States who collectively manage approximately $2.6 trillion in assets. The survey was conducted by the institutional investor’s custom research lab.

Related: $138 billion investment manager Man Group to launch crypto hedge fund: Report

In October, a survey of institutional investors conducted by Fidelity Investments subsidiary Fidelity Digital Assets, released on October 27 had similar findingsand in an interview with Cointelegraph, Fidelity’s head of research Chris Kuiper noted:

“They’re agnostic to this crazy volatility and price because they’re looking at it from a very long-term perspective. They are looking for the next years, five years, decades or more.”

It’s worth noting that both of these surveys were conducted before the FTX collapse, which according to CoinShares led to record growth of products with short investmentwhile total assets under management by crypto-institutional investors are now at $22 billion, the lowest in two years.

CoinShares’ James Butterfill said on Nov. 21 that the surge in short investments is likely “a direct result of the continued impact of the FTX collapse.”

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