Survey: 20 percent of institutional investors want to invest in Bitcoin in the future
JPMorgan concludes that more institutional investors want to venture into the crypto market in the future.
A new survey by JPMorgan has found that more than 20% of institutional investors who have not currently invested in Bitcoin Trader cryptocurrencies are highly likely to do so in the future.
More than 3,400 investment bankers took part in the major bank’s survey, representing 1,500 institutions. While 89% of them work at companies that do not yet invest in cryptocurrencies, 11% have already taken the plunge.
Companies have not yet entered the market
A positive signal, however, is that twice as many companies intend to do so, which indicates that more money from institutional investors will flow into the crypto market in the near future.
For example, 22% of investors whose companies have not yet entered the market say that they expect their companies to invest in cryptocurrencies in the future.
Although many observers argue that the increased interest of institutional investors will establish the bitcoin price above the USD 50,000 mark in the long term, the survey nevertheless shows that the vast majority of them are not yet interested.
Accordingly, 14% of respondents say they see cryptocurrencies as „rat poison“, a phrase that goes back to investment guru Warren Buffett. Another 21% see them as a passing fad and only 7% are convinced that cryptocurrencies will become „one of the most important asset classes“.
The survey participants express security concerns first and foremost, as 98% are convinced that fraud is „partly“ or even „very much“ prevalent in the crypto industry.
Damien Vanderwilt, co-president of crypto investment bank Galaxy Digital, recently confirmed to Bloomberg that security remains the overriding issue:
„When I think about the conversations we have with corporations and institutional investors interested in investing in cryptocurrencies, the first major area of concern these clients cite is security. They wonder if the assets they are buying are safe and can be kept safe.“
Some big-name players like Tesla and MicroStrategy don’t seem to be letting that stop them, however, as the two big companies have invested billions in bitcoin in recent months. In February alone, MicroStrategy increased its own Bitcoin assets by 27%, bringing the software company’s total holdings to 90,531 BTC.