The well-known crypto trading platform Coinbase surveyed institutional investors, and the results show that despite the industry’s continuous “Crypto Winter,” these investors have boosted their allocations to cryptocurrencies.
According to the report, 62% of current cryptocurrency investors have increased their allocation over the past 12 months, while only 12% have decreased their holdings.
Additionally, over the following three years, 58% of investors anticipate increasing their allocations. Whereas 59% of investors either utilize buy-and-hold strategies now or plan to do so in the future.
The overall perception of digital assets has remained favorable, with 72% of respondents agreeing that “digital assets are here to stay.” When considering both those who already invest in them and those planning to do so, there is an overwhelming acceptance for crypto – at 86% and 64%, respectively.
Despite continued bullish optimism, the crypto winter has dimmed prospects for near-term price growth. As per investors’ expectations for price movements, 54% believe prices will stay range-bound during the upcoming year, while 29% believe prices will decline.
The survey’s findings also show that investors are sowing seeds for the future. They were questioned about particular actions they have taken or intend to take while investing in cryptocurrencies. The top replies were to get research and insights (44%) and market data (36%).
Attitudes Towards Crypto Assets
Additionally, the survey further reveals the reasons for investing and attitudes regarding the asset class:
Investors pointed to the goal to improve funded status,access yield opportunities, invest in innovative technology, and potential for long-term appreciation as main reasons for investing in the asset class.
Some investors believe that digital currency is either a commodity or an asset, but more investors are creating categories for it themselves. “This is also evidence of a long-term opportunity that may emerge in the future.”
Of all the asset classes surveyed, 56% of investors chose US corporate bonds for the most beneficial returns over the next 3-year period. Digital assets came in second place at 35%, followed by the property at 35%.
When looking at the cryptocurrency market from an investor perspective, it becomes clear that regulation is needed. A 47% of investors see past crashes such as Terra Luna and 3AC going bankrupt as a call to action for policymakers to make things fairer for everyone and put in place regulations that can help limit potential future losses.
However, more than a third (36%) find these events proof enough that firms need better risk management strategies – particularly when navigating volatile markets.
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