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.”

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