What are institutional investors most concerned about with cryptocurrencies? Security is key

A survey conducted by Europe’s largest regulated digital asset hedge fund manager shows that security concerns, relative to volatility and regulations, are the main reasons preventing institutional investors from investing in crypto and digital assets.

The survey of institutional investors and wealth managers with about $108.4 billion under management shows that 79% see asset custody as a key consideration in whether to invest in this space. Custodians provide solutions for investors looking to securely store and protect their crypto assets. The report interviewed 50 wealth managers and 50 institutional investors from the US, UK, Germany, France and the United Arab Emirates.

“Secondly, 67% of respondents listed price volatility as a key consideration, market capitalization was a factor at 56%, and the regulatory environment was at 49%,” the report said. A further 12% listed the carbon footprint of Bitcoin and other cryptocurrencies as a key consideration. Important reasons not to invest.”

A survey conducted by Europe’s largest regulated digital asset hedge fund manager shows that security concerns, relative to volatility and regulations, are the main reasons preventing institutional investors from investing in crypto and digital assets.

Respondents also expressed optimism about the prospect of the U.S. Securities and Exchange Commission (SEC) being given more power to regulate such assets. SEC Chairman Gary Gensler called on Congress to give the agency more powers to regulate cryptocurrency trading, lending and platforms. Of those respondents, 76 percent expect to approve the policy this year.

“If the SEC were to be granted these additional powers, 73% of institutional investors and wealth managers believe it would have a positive impact on the price of cryptocurrencies and digital assets, and 32% believe it would have a very positive impact,” the report said. ."