Let us check the crypto market. Cointelegraph Consulting published a more than seventy-page research report. It was to gain a deeper understanding of how professional investors feel concerning digital assets. The report has eight authors. Nexo, Blocksize Capital, Bitmain, BlockFi, and SIX Digital Exchange supported the report. The Discovering Institutional Demand for Digital Assets reports shows which coins wealthy investors already own. Moreover, it shows which ones they will most probably buy in the coming months. Also, the report covers the most popular structured products and regulates funds that are for investors from the traditional finance realm.
Fifty-five portfolio allocators participated in the survey. The total assets that they had were over $719 billion. It is double the entire market capitalization of the digital asset market. Thirty-six percent of those professional investors already had blockchain-inspired assets in their portfolio. It was either through direct investment in security tokens, cryptocurrencies, and stable-coins or with futures, funds, and structured products.
39,29% plan to invest, out of the remaining 64% that have not yet invested. That equals to 25.15% + 36% = 61.15% of professional investors in the survey wither planning to buy in the future or already owning digital assets.
Most investors with exposure to cryptographic assets are mainly interested in ETH (Ethereum) and BTC (Bitcoin). Around 75%, 88% of respondents exposed to cryptocurrencies have invested in those cryptocurrencies, respectively. Nevertheless, institutional investors are increasingly interested in security tokens. For 39.29% of who plan to invest in the future, security tokens were more popular than alternative coins, including Ethereum.
Some investors hold cryptographic assets for speculation. They are not using it as a medium of exchange. They buy before more oversized pockets enter the market and hope to ‘front-run’ Wall Street. There are genuine reasons to be excited concerning institutional investors joining the space, putting the fear of missing out aside.
Professional investors manage the sheer size of the wealth like Insurance companies, pension funds, and university endowments is enough to have a dramatic impact on the entire digital asset industry in case they enter the market. There have been rumors going around that institutional investors were beginning to buy cryptocurrencies for years. Nevertheless, now the most recent academic survey and other sources are providing evidence to support that statement.
Professors from high-quality universities did the research. That it is worth noting if you are a trader or planning to become a successful trader.
Now we can wait and see what will happen in the crypto market.
- Trading Instrument