Findings from crypto-asset insurer Evertas revealed that 26 percent of institutional investors believe the sector will “significantly” increase their level of investment, while 64 percent expect a slight increase.
The survey questioned a number of investors who collectively manage $74.8 billion ($103.6 billion) in assets.
When asked why they thought investors would increase their exposure to cryptocurrencies and cryptoassets, 84% of respondents said it was because they expected infrastructure to improve market regulation.
The majority (80%) also said it was because the crypto market was going to get bigger, providing greater liquidity.
Three in four (76%) said they expect more traditional fund managers and financial services firms to enter the market, with a greater choice of funds and vehicles investment.
About half (46 percent) cited negative interest rates and negative bond yields.
However, Evertas found that institutional investors still have serious reservations about buying into the crypto market.
Some 56 percent of participants said they were “very concerned” about the lack of insurance coverage for cryptoassets, while 54 percent said they were “very concerned” about the working practices and compliance procedures of cryptoassets. companies in the sector that provide services to investors. .
Other concerns included the quality of custody services in the market, the availability and quality of trading desks and reporting facilities.
J Gdanski, chief executive and founder of Evertas, said the study shows investors are enthusiastic about increasing their exposure to the segment, but there are still “clearly many issues around infrastructure that supports these markets.”
“These clearly need to be addressed if the full potential of institutional investors’ investments in cryptoassets is to be realized,” Mr Gdanski said.
Evertas President and COO Raymond Zenkich added that the main concerns about the lack of insurance were perhaps not surprising, “when insurers are only providing about 2 billion dollars for a market worth between 250 and 300 billion dollars.”
