1200 AHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNjQ4ZmU4MzMtNTJjNC00NGFhLTllZWUtZjBhNjBjZGEyYmU3LmpwZw

Institutional investors are buying through crypto winter: Survey

A survey of institutional investors suggests that their cryptocurrency allocations have increased over the past year despite the industry going through a protracted crypto winter.

A Coinbase-sponsored survey released on Nov. 22 conducted between Sept. 21 and Oct. 27 found that 62% of institutional investors who invested in crypto increased their allocations over the past 12 months.

In comparison, only 12% reduced their crypto exposure, indicating that most institutional investors may be bullish on digital assets in the long term despite falling prices, according to the survey.

More than half of the investors surveyed said they currently, or plan to, take a buy-and-hold approach to cryptocurrencies, with the belief that crypto prices are flat and bound over the next 12 months will stay

Additionally, 58% of respondents said they expect to increase their portfolio’s allocation to crypto over the next three years, with nearly half “strongly agreeing” that crypto valuations will increase over the long term.

As previously widely reported, regulatory uncertainty was once again the factor most investors were concerned about when considering whether to invest in crypto, especially among those planning to invest in the next 12 months, where 64% noted concerns.

The representative sample of the Coinbase survey consisted of 140 institutional investors based in the United States, who collectively had assets under management totaling approximately $2.6 trillion. The survey was conducted by business-to-business publisher Institutional Investor’s Custom Research Lab.

Related: $138B Investment Manager Man Group Launches Crypto Hedge Fund: Report

In October, a survey of institutional investors by Fidelity Investments subsidiary Fidelity Digital Assets released on October 27 had similar findings, and in an interview with Cointelegraph, Fidelity’s head of research Chris Kuiper noted:

“They’re agnostic to some of this crazy volatility and price because they’re looking at it from a very long-term perspective. They are looking at the next years, five years, decade or more.”

It is worth noting that both of these surveys were conducted before the collapse of FTX, which according to CoinShares led to a record boom in short investment products, while total assets under management of crypto-institutional investors are now at $22 billion, the lowest in two years.

CoinShares’ James Butterfill on Nov. 21 said the increase in short investing is likely “a direct result of the ongoing fallout from the FTX collapse.”

Related Posts