According to a recent Evertas survey, 26% of respondents believe that institutional investors will significantly increase their level of investment in bitcoin and crypto over the next five years.
Moreover, 64% of respondents expect a slight increase, whereas in the case of hedge funds, 32% believe there will be a significant increase and 48% believe there will be a moderate increase.
The survey was aimed precisely at institutional investors, as the company that conducted it, Evertas, provides hedges for institutional investors holding cryptocurrencies, including exchanges, custody services, traditional financial institutions, funds, family offices and individuals with ultra-high net worth.
Crypto and institutional investors: the results of the survey
However, the results of the survey also revealed that these large investors still have substantial concerns about investing in crypto assets, as 56% said they are very concerned about the lack of insurance coverage for these assets, and 54% said they are very concerned about compliance with regulations for companies that allow them to invest in the sector.
However, 84% of respondents say that one of the reasons they expect institutional investment in crypto assets to increase is the expectation that the regulatory infrastructure of this market will improve, while 80% believe that another reason is that the crypto market will become much larger and more liquid in the future.
In addition, 76% believe that an increasing number of traditional fund managers and financial services companies will enter this market, offering a greater choice of funds and investment vehicles.
The CEO and founder of Evertas, J Gdanski, said:
“Our research shows that institutional investors are enthusiastic about increasing their exposure to cryptocurrencies and crypto assets in general, but there are clearly many issues regarding the infrastructure that supports these markets that still concerns them. These clearly need to be addressed if the full potential of investment from institutional investors in crypto assets is to be realised”.
In this regard, the company’s President and COO, Raymond Zenkich, added:
“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 USD2 billion for a market that is worth between USD250 billion and USD300 million. We are working closely with the insurance community to address this issue”.