Institutional investors want to increase their exposure to digital currencies by increasing their investment in crypto assets such as Bitcoin (BTC). According to new research conducted by the digital asset issuance company Evertas, 26% of institutional investors such as wealth managers, family offices, and pension funds plan to increase their cryptocurrency purchases.
Institutional investors set to purchase more crypto
The cryptocurrency industry has witnessed a significant increase in institutional interest in recent times. Now, Evertas’ new finding shows that institutional investors are planning on purchasing more cryptocurrencies.
While responding to the survey, 84% of the participants said that the reason behind institutional investors’ interest to increase their cryptocurrency exposure is likely because of the fact that they believe the crypto market’s regulatory infrastructure will improve. While on the other hand, 80% of the respondent said that it is because the market will provide greater liquidity.
Concerns about the cryptocurrency sector
However, there are some concerns that institutional investors have regarding making an investment in cryptocurrency. Some of them have issues regarding the lack of insurance cover for cryptocurrencies while some have concerns about “the working practices and compliance procedures of companies working in the sector who supply services to institutional investors.”
The President and COO of Evertas, Raymond Zenkich believes that the issue of the lack of insurance for digital assets is the major concern out of others that institutional investors have. He said that they are working on this with the insurance community so that they can together resolve this issue.
The Founder and Chief Executive Officer (CEO) of Evertas, J Gdanski also said that all of the issues of institutional investors need to be addressed. Evertas CEO stated:
“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 realised.”