A survey of institutional investors revealed that security and asset retention are viewed as the biggest barrier to investing in bitcoin and other cryptocurrencies in this sector. Bloomberg reported this Thursday, Jan. 6.
The interviews were reported to have been conducted with 50 institutional investors, including investment banks JP Morgan and Goldman Sachs, as well as 50 wealth managers in the United States and Europe (UK, Germany, France) and the United Arab Emirates. Arabs. The group collectively manages $ 108.4 billion in assets.
Contrary to the view that investors are most afraid of volatility or lack of regulatory clarity, the results showed that 79% of respondents cited security as the biggest concern for the bitcoin and cryptocurrency market.
“Our research shows that custody and security are properly recognized by institutional investors as a key differentiator for this asset class,” said Henry Howell, business development manager at Nickel Digital. According to him, advances in institutional – oriented solutions are encouraging more large – cap investors to gain exposure to cryptocurrencies.
However, price volatility is a concern for the institutional sector. The study showed that the volatility of 67% of participants is a key factor when entering the crypto-asset market. Meanwhile, 56% of market capitalization and 49% cited the regulatory environment as reasons not to invest.
In addition, the study shows that 73% of respondents believe that giving the SEC powers to regulate cryptocurrencies will have a positive impact on price.
Institutional investment in bitcoin and other cryptocurrencies saw a significant spike in 2020 and 2021. A study published last August showed that the institutional sector already had almost 1.5 million BTC under its zone, or about 8% of total bitcoin supply. Block.one and MicroSstrategy, the companies with the largest amount of bitcoins, accounted for more than 162,000 BTC, acquired between 2020 and 2021.