Investors plan to increase allocation to crypto-assets

Over a quarter (26%) of institutional investors expect that pension funds, insurers, family offices and sovereign wealth funds will “dramatically” increase their level of investment in cryptocurrencies over the next five years.

Research from the crypto-asset insurance firm Evertas,  also found that a further 64% anticipate a “slight” rise while the corresponding figure for hedge funds is 32% and 48% respectively.

Eighty-four per cent of survey respondents said this was because they expect the regulatory infrastructure for the market to improve.

Meanwhile, 80% said it is because the crypto market will become larger and provide greater liquidity. 

Three in four (76%) say it is because they expect more mainstream fund managers and financial services companies to enter this market, and there will be more funds and investment vehicles in this area to choose from.    

Raymond Zenkich, president of Evertas, said: “A lack of adequate insurance for the crypto-assets market is clearly top of the list of concerns for many institutional investors, which is perhaps not surprising when insurers are only providing capacity of around $2 billion for a market that is worth between $250 billion and $300 million. We are working closely with the insurance community to address this issue.”

©2020 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Through AI and ML and cloud-enabled ecosystems, managers are finding ways to cut operating costs, supercharge the customer experience and add value to the bottom line.
FIND OUT MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST