Expanding Crypto Adoption Among Canadian Institutional Investors
Discover the latest insights from a KPMG survey revealing the growing exposure of Canada-based institutional investors to crypto assets in 2023.
The Growth of Institutional Investment in Crypto Assets
Explore the findings of the KPMG survey, indicating a significant increase in institutional investor participation in the crypto market in Canada.
– Nearly 39% of Canada-based institutional investors had exposure to crypto assets in 2023
– A notable recovery from the market slump experienced in 2022
– Direct or indirect exposure to crypto assets reported by 39% of Canadian institutional investors
– Representing a rise from 31% in 2021
– Institutional investors holding cryptocurrencies directly surged to 75% in 2023
– Up from 29% in 2021
– Crypto exposure via exchange-traded funds remained steady at 50%
– Despite approval of US spot Bitcoin ETFs in early 2023
The Impact of Regulatory Developments on Crypto Adoption
Gain insights into how regulatory changes, such as the approval of spot Bitcoin ETFs by the U.S. SEC, have influenced the adoption of crypto assets among Canadian institutional investors.
– Approval of US spot Bitcoin ETFs in January 2023 marked a pivotal moment for crypto assets
– Accessing crypto holdings via public equities and derivatives on the rise among Canadian institutional investors
– Increased confidence in crypto as an investment alternative asset class
– Regulatory clarity and approval of Bitcoin ETFs instrumental in boosting institutional investor confidence
Canada’s Crypto Adoption Trends and Optimism
Analysts and industry experts share their perspectives on the growth potential of crypto adoption in Canada and the global market.
– Canadian marketplace witnessing increased adoption across all cohorts and demographics
– Optimism regarding future crypto adoption in Canada due to underserved segments of the traditional financial system
– Global crypto market expected to witness significant growth and liquidity
– Anticipated influx of institutional investors into the crypto market, including pension funds and insurance companies
Hot Take: The Future of Crypto Investment in Canada
As institutional interest in crypto assets continues to rise, Canada emerges as a key market for expanding adoption and investment opportunities.
Sources:
– [KPMG Survey Highlights](https://kpmg.com/ca/en/home/media/press-releases/2024/04/institutional-adoption-of-cryptoassets-jumped-in-2023.html#:~:text=According%20to%20a%20bi%2Dannual,cent%20more%20institutional%20investors%20included)
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