Long awaited, the massive arrival of institutional investors in the Bitcoin (BTC) market now seems to be taking shape. This is what suggests new investigation commissioned by insurance company Evertas. To reach this conclusion, a group of 50 institutional investors who collectively manage over $ 78 billion in assets in the United States and the United Kingdom were interviewed. It appears that the majority of institutional investors plan to significantly increase their holdings in cryptocurrencies. The prospect of bitcoin’s downward movement does not seem to dampen their willingness to acquire more assets. Explanations.
The reasons for the change of course made by institutions
To understand this displayed desire of institutions to invest more in Bitcoin and cryptocurrency, three main reasons emerge. The first of these is that investors are convinced that the regulation of the sector will improve and become clearer in the future. The second reason put forward is the search for better liquidity which, according to them, would be available in this market which is set to grow. Finally, institutional investors appreciate the ability of this market to offer them a wider range of investment vehicles. However, there are many reasons why this massive arrival of institutions could take longer.
This is what shared J. Gdanski, CEO and founder ofEvertas, about the investigation commissioned by its structure. ” Our research shows that institutional investors are excited to increase their exposure to cryptocurrencies in general, but it is clear that many issues regarding the infrastructure that supports these markets still concern them. It is clear that it is necessary resolve them if the investment potential of institutional investors in crypto assets is to be fully realized “. The most mentioned problems are in particular the lack of insurance for digital assets and the quality of procedural services in the sector.
A willingness to invest despite the volatility of bitcoin
The news of the price of bitcoin in this year 2020 will have been mainly driven by forecasting a bullish cycle that was to start after the halving. Although the current course of events is not as announced, institutional investors remain interested in bitcoin. You have to go to the platform Bakkt to see the manifestation of their will. Indeed, the volume of Bitcoin futures trading has reached there a new record with more than 200 million dollars in contracts traded. These figures show that institutional investors continue to accumulate BTC regardless of the value of the asset.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
As the regulatory framework around cryptocurrencies is a rapidly evolving field in many countries, the interest of institutional investors is only expected to grow. Their entry into this market would also be welcome for the adoption of cryptocurrencies as believed by the majority of participants in the Evertas survey. Many players are positioning themselves and want to enter the world of cryptocurrencies and Bitcoin. This is the case for institutions, but also for banks.