- Institutional investors are increasing their BTC holdings
- Institutions are still interested in Bitcoin despite the recent price action of the digital currency
- More institutions are expected to join the flock to Bitcoin
Bitcoin News Today – According to new data from a survey, institutional investors are increasing their Bitcoin holdings despite the near term dips in the price of the digital currency. Evertas – a digital currency asset insurance company – commissioned the new survey.
Survey Shows Institutional Investors Would Increase Their Stake in Bitcoin and Other Cryptos
Based on the data from the survey, the firm found out that the institutional investors plan to increase their holdings in Bitcoin and other digital assets significantly in the future. After surveying 50 institutional investors managing more than $78 billion in assets collectively, a standout response was that 26 percent of participants believe insurers, pension funds, sovereign wealth funds, and family offices will increase their stakes in digital currencies significantly.
The increase in interaction would be moderate, according to 64 percent of the respondents. However, the group also expects that hedge funds would be more actively engaged in digital currency. About 32 percent of the participants believe that hedge funds would increase their digital currency holdings significantly.
Bitcoin (BTC) Price Today – BTC / USD
Institutional investors are somewhat keen to invest in BTC and other digital currencies because they believe regulations for the digital currency market will improve and become clearer in the future. Some believe the market would become better eventually, providing better liquidity, a feature that many investors are looking for.
As the market gets better, many believe there would be a variety of investment opportunities for institutions to choose from. According to the survey, there are still many obstacles in the road to the institutionalization of digital currency. Over 50 percent of the respondents said that they are concerned about the lack of insurance for cryptocurrencies. A fraction of them is also concerned about the quality of custodial services, reporting facilities, trading desks, and the procedures of other firms working in the section.
The founder and CEO of Evertas – J. Gdanski – told Cointelegraph:
“Our research shows that 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 realized.”
Institutions Are Still Interested in Bitcoin Regardless of Its Recent Price Action
The recent price action of Bitcoin is poor, but many institutions are still interested in the digital currency. Recently, Bakkt’s Bitcoin futures trading volume surged to a new record of over $200 million worth of contracts exchanged, and this means that institutions are still gathering Bitcoin.
As the interest of investors in digital currency increases and the regulatory landscape of digital currencies become clearer, it is expected that the wave of institutions moving to BTC would continue to increase.