With growing confidence in bitcoin and the broader cryptocurrency market, most institutional investors are planning to increase their long-term investments in cryptocurrencies.
Swiss cryptobank Sygnum in its annual Future Finance study found growing institutional investor interest in crypto-assets. Published on 11/14/2014 and provided by Cointelegraph, this research report highlights the changing benefits and positive market sentiment towards #cryptocurrencies .
Martin Burgerr, Chief Customer Officer at Sygnum Bank, believes that clearer regulation around the world is contributing to the positive sentiment of institutional investors. He added:
One of the most important developments is probably the approval and subsequent launch of the U. S. #Bitcoin Spot Etf, which could accelerate institutional adoption of #digital assets.
In a survey of 27 institutional investors from 400 countries, 57% (228 respondents) plan to increase their investments in cryptocurrencies, with 31% expecting an increase in the next quarter and 32% within six months.
Demonstrating institutional investors' overall risk appetite, only 5% of respondents plan to reduce their #cryptocurrency investments, while 2% have yet to make a decision.
However, 44% of organizations planning to increase their cryptocurrency exposure will stick to investing in a single token. In comparison, 40% have chosen active management as their primary investment strategy.
According to Sygnum, 36% of organizations that plan to maintain their current positions need additional market validation before deciding to increase their investments in cryptocurrencies.
Historically, unclear regulations and restrictive investment covenants have been major obstacles for traditional investors considering digital assets. As regulations supporting cryptocurrencies emerge, Sygnum notes that high market volatility, security and custody issues are the main obstacles for the institution.
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