Institutional investors are bracing for crypto
Institutional investors are eyeing up investments in the crypto space and they will move in the next 12 months.
That is according to a survey by European investment manager Nickel Digital Asset Management which revealed that 62% of global institutional investors with no exposure to crypto are expecting to make their first investment within the next year.
Hate or love it, cryptocurrency's on top.— Cointelegraph (@Cointelegraph) September 28, 2021
More than half of financial institutions in the U.S., Europe, and the UAE are planning to invest in digital assets in 2022. https://t.co/auuApaQmAD
The survey, as reported by CoinTelegraph, got feedback from 50 wealth managers from institutions across America, Europe and the UAE earlier this year.
The main reason for institutions to bring their piles of cash into the space is the potential to make capital gains over the long-term, according to 47% of respondents.
Good rule for long term crypto investing is asking a question who is going to buy it when retail inevitably gets bored and leaves for shiny new stuff.— ⭐️🩸Fiskantes (tree, tree) (@Fiskantes) September 28, 2021
An improving regulatory environment was cited by 41% of respondents, while 34% believe crypto to be a hedge against inflation.
“There is no doubt that the crypto assets market is becoming more mainstream in the institutional and wealth management sectors,” Nickel’s head of business development, Henry Howell, said.
Year-to-date Bitcoin is up by 43.67%, while Ethereum, XRP and Polkadot have added 281.66%, 309.7% and 264.45% respectively.
Much of the decision making could depend on the outcome of the likely collision between SEC Chairman Gary Gensler and the wider space.
Gensler has issued a warning about the state of the crypto market in its current form.
Once the wheat is separated from the chaff, so to speak, the deep pockets of institutional investors could flood in.