Institutions Bullish on Cryptocurrency Regardless of Bear Market: Report
A recent report by cryptocurrency data provider Amberdata and worldwide financial services analyst Coalition Greenwich outlines that institutional investors remain optimistic about digital assets, even during the ongoing bear market. The report surveyed sixty asset managers, including hedge funds, deal financial resources corporations, and family offices, primarily from the United States, Europe, and the United Kingdom. It found that 48% of the respondents as of now have digital assets under management (AUM). Although while most institutions hold between $1-10 Million in digital assets, 19% manage between $11-50 Million, and only one institution operates over $1 Billion in AUM. Regardless of concerns about the regulatory environment, 85% of the respondents believe that the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will provide positive opportunities for digital asset adoption. Nonetheless, challenges such as regulatory uncertainties, security practices, custodying digital assets, and blockchain performance continue to hinder institutional engagement in the cryptocurrency space.
Cryptocurrency Roadblocks and Institutional Commitment
The report outlines plenty of roadblocks faced by institutions that are not as of now involved in cryptocurrency, including regulatory uncertainties, lack of common KYC/AML technology, unclear tax policies, custody complexities, security challenges, and blockchain performance issues. Nevertheless, one in every four institutions surveyed already has a dedicated role focused on digital assets, and this number is expected to grow by 13% in the next twelve months. The report’s findings indicate that numerous institutions are prioritizing cryptocurrency products and services regardless of the present bear market. In addition, regardless of the collapse of FTX, a whole lot of number of asset managers still expect centralized exchanges to grow over the next five years.
The report outlines that institutional investors are not deterred by the cryptocurrency bear market and remain optimistic about digital assets. Regardless of concerns about the regulatory environment and numerous challenges, institutions are committed to offering specialized cryptocurrency services and expect positive opportunities in the future. This implies that institutional engagement in the cryptocurrency space will continue to grow, contributing to the mainstream adoption of digital assets.
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