Institutional Investors Plan to Raise Their Stake in Crypto, Especially in Bitcoin

UTC by Steve Muchoki · 3 min read
Institutional Investors Plan to Raise Their Stake in Crypto, Especially in Bitcoin
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Evertas surveyed 50 institutional investors both from the United States and the United Kingdom that manage over $78 billion in assets.

A recent survey conducted by Evertas, the world’s first crypto asset insurance company, indicates that institutional investors plan to significantly increase their stakes in Bitcoin (BTC) and other digital assets in the future.

This comes at a time when the cryptocurrency industry at large is experiencing sell pressure. With increased fiat inflation due to the ongoing coronavirus pandemic, investors are fleeing to assets that can add value or store it diligently.

Evertas surveyed 50 institutional investors both from the United States and the United Kingdom that manage over $78 billion in assets. According to the results, 26% of the participants believe that pension funds, insurers, family offices and sovereign wealth funds will raise their stakes in cryptocurrency “drastically” in the near future.

The cryptocurrency industry is gaining popularity both to retail and institutional investors at an unprecedented rate. Fueled by the coronavirus pandemic that has catalyzed the need for electronic payments, digital assets are bound to enter a new phase of adoption.

The survey further revealed that 64% of the participants believe the increase in interaction will be moderate, but the group also expects that hedge funds will be more actively engaged in crypto. Besides, approximately 32% of the respondents believe hedge funds will increase their crypto holdings drastically.

Evertas on Institutional Investors, Crypto Assets and Their Interest in Bitcoin

Institutional investors are still skeptical about some of the cryptocurrency projects since they do not have clear regulations from different jurisdictions and also from global financial institutions regulators.

In addition, with the high volatility experienced in the crypto industry, a significant portion of institutional investors are worried to go in full and end up losing their capital.

“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 realized,” J. Gdanski, CEO and founder of Evertas, told Cointelegraph.

In a recent study conducted by the same company, it revealed that the blockchain industry and the crypto market is being held back by lack of insurance.

Despite being a lucrative field, institutional investors are sluggish to flock in the industry due to a lack of proper insurance protocols.

“Insurance executives believe that further development of blockchain and crypto assets is being held back by the lack of an insurance market for such risks, according to a survey by Evertas. The crypto asset insurer found that 55% of respondents feel companies are holding back on new blockchain initiatives and crypto assets because they cannot get insurance cover,” the company explained in its survey.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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