Institutional investors are bullish on Bitcoin and many plan to increase their exposure to cryptocurrencies, according to a new survey by Evertas, a global digital insurance firm that protects investors with crypto assets and users of blockchain systems.
Evertas, which manages approximately $ 78 billion in assets, said that in the next five years, more investors will exorbitantly increase their investments in crypto assets. Evertas founder and CEO J Gdanski stated:
"Our research shows that institutional investors are excited about increasing their exposure to cryptocurrencies and crypto assets in general, but clearly there are many issues regarding the infrastructure supporting these markets that still concern them."
Respondents consisted of various types of cryptocurrency whales, including high-net-worth individuals, traditional financial institutions, hedge funds, custodians, exchanges, and family offices.
Why the bullish sentiment on crypto assets?
Of the investors surveyed, the research indicated that a whopping 90% believe that other institutional investors will increase their cryptocurrency holdings. This was attributed to the expected expected growth in the cryptocurrency industry in the same time period.
The survey found that 84% believe that cryptocurrency infrastructures will improve, making it easier for more people to transact with crypto assets. The growth of the crypto market according to 80% of respondents will increase liquidity to further improve the already rapid asset exchange rate.
The third reason is that the growth of the cryptocurrency market is set to skyrocket with the entry of more fund managers or institutional companies, according to 76% of respondents. Additionally, another 76% of investors believe that custom investment options for crypto assets will increase, making cryptocurrency investments more flexible and attractive.
The data also reflects diminishing faith in the ability of governments to control rising inflation due to fiscal measures. Up to 46% of investors said negative interest rates and negative yielding bonds will influence many investors to expand their portfolios in crypto assets.
The increasing tokenization of crypto assets according to 44% of investors, which also depends on national and international regulatory frameworks and the general improvement of custody services, will also influence the increase in investments in cryptocurrencies.
In terms of crypto relationships with stocks and bonds, 50% of investors prefer the low correlation shown, especially for those who look at cryptocurrencies as a secondary store of value.
More than 50% of investors are concerned about the lack of insurance
The data indicated that while bullish sentiment on cryptocurrencies is high, 56% of investors are concerned about the limited insurance policies available for digital assets. CEO Gdanski said:
“The lack of adequate insurance for the crypto market is clearly a top concern for many institutional investors, which is perhaps not surprising that insurers only provide the capacity of around $ 2 billion for a market that is worth between $ 250 billion and $ 300 billion ”.