Professional investors remain enthusiastic about cryptocurrencies but want the backing of large traditional financial institutions before taking the plunge themselves, according to a survey by Nomura's digital assets unit.
Institutional investor interest in cryptocurrencies has stalled in recent weeks amid heightened US regulatory uncertainty and a regulatory crackdown on the broader industry.
In a Laser Digital Investor Survey conducted in April, 90% of professional investors surveyed said it would be very difficult to have support from “large traditional financial institutions” for any crypto asset fund or investment vehicle before they or their cli ents even consider committing money. It is important to go in. However, a whopping 96 percent of respondents believe that digital assets “represent an opportunity for investment diversification” in addition to traditional asset classes such as fixed income, cash, equities and commodities.
Industry watchers predict an increase in institutional investment following BlackRock's spot ETF filing. Additionally, 82% of surveyed professional investors are generally optimistic about the crypto asset class over the next 12 months. They specifically mention Bitcoin and ether (ETH), a pair considered by almost half of respondents to be the foundation of the Web3 economy and a “durable source of investment opportunity.”
Dr. Jez Mohideen, CEO of Laser Digital, said the study showed that institutional investors see "a clear role for digital assets in investment management and the benefits they can bring, such as greater portfolio diversification." However, about three-quarters said that "legal or regulatory restrictions" could prevent their firms or clients from investing in crypto-related funds or products.
Following the FTX debacle in November, global regulators have taken a tough look at the digital asset space, but many countries are actively rolling out regulations for the new asset class.
Laser Digital conducted an independent global survey of institutional investors in 21 countries in Europe, the Middle East, Asia, South Africa and Latin America. More than 300 institutional investors with total assets of $4.9 trillion were surveyed, inc luding wealth managers, pension funds, hedge funds, investment funds and insurance asset managers.
