One of the most popular ideas floating around in the crypto verse, especially since the protracted 2018 crypto winter, is that institutional money will come into the cryptocurrency market sooner rather than later. That hypothetical cash injection would boost demand for digital assets thus increasing trading volumes, token prices. It would usher in the next crypto summer, in short. By “institutional investors” you could understand several things.
Some of those could be high net-worth individuals, family businesses, commingled funds, hedge funds, pension funds, and banks. The common denominator in all those diverse potential actors is that they all have billions of dollars in assets to move around. And most of them (68%) mean to own digital assets in some way by 2022.
The deVer survey
Several surveys support the idea. One of them comes from Dubai’s deVer Group, which is an independent economic think-tank. The company questioned 700 hundreds of its customers who are big players from all over the globe (Australia, UK, Qatar, Germany, Spain, Switzerland, and other countries). The sample chosen included only entities worth more than a million GBP (equivalent to 1.3 million USD) in investable assets.
Irish Tech news reported that “68 percent of the survey’s respondents revealed they have invested or will invest in cryptocurrencies like bitcoin, Ether, or XRP before the end of 2022.” So, that’s a couple of years ahead. Only last June, a comparable survey carried out by the same company had this number at 35%. So in fewer than twelve months, the portion of high-flyers in the world’s financial system willing to enter the crypto verse is almost twice as significant.
The company’s CEO and founder, Nigel Green commented this:
“Wealthy individuals are increasingly seeking exposure to cryptocurrencies. Cryptocurrencies are the future of money. Crypto is to money what Amazon was to retail. High-net-worth individuals aren’t prepared to miss out on this and are rebalancing their investment portfolios towards digital assets. Those surveyed clearly will not want to be the last one on the boat.”
Mr. Green and his firm are not alone in their conclusions. Two similar surveys, one of them done by the eToro group concluded that,
“71% of millennials would invest in crypto if it was offered by traditional financial institutions.”
“High net-worth individuals do follow the trends of the young. In a more circulated study, Greenwich Associated, on behalf of Fidelity Investments, surveyed their high net-worth base of customers.”
Similar polls with similar conclusions
Fidelity conducted a similar study of its own:
“Almost half of the institutional investors surveyed (47%) view digital assets as having a place in their investment portfolios, but opinions vary on how these investors would prefer to hold digital assets in the future. 76% of respondents deemed security as their top priority when considering custodial solutions.”
It bears mentioning that some institutional investors are already putting money in the cryptocurrency market. Some research into the activity within the blockchain world shows that institutional players already own 7 percent of the value in the cryptosphere. Such portion is rather meager when compared with the participation that those investors have in Forex, equity, securities, and other traditional financial markets.
Investors at that level are very risk-averse which is why they’ve kept away from crypto for the best part of a decade. Many among them are already accepting the idea of including digital assets in their portfolios, and when they do come into the market, they will inevitably open the floodgates.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
