It is slowly getting colder in the country, but it has been a very cold winter for crypto investors for a long time. Since the peak of bitcoin (BTC) in November 2021, it has gone downhill and the prices often turn red. It is therefore not an easy period for both private and institutional investors. The major US crypto exchange Coinbase has conducted research into the decision-making of large institutional investors towards cryptocurrencies.
Institutional crypto investors
The’2022 Institutional Investor Digital Assets Outlook Surveyshowed that 62% of institutional investors who invested in crypto actually increased their investment in the past twelve months. In contrast, 12% have chosen to invest less money in the new world of digital assets. This proves that institutional investors continue to take a long-term view of the new asset class, despite the sharp falls in prices.
In addition, 58% of institutional investors plan to invest more in cryptocurrencies in the next three years. A majority of investors (59%) use a ‘buy and hold strategy or plans to do so.
Crypto is here to stay
72% of a total of 140 institutional investors said they believe digital assets are here to stay for the future. The investors who were already invested in crypto at the time of the research were slightly more convinced in this regard. Most investors are not too bullish about the price development in the next twelve months. However, no less than 71% expect the value of digital assets to increase in the long term.
Last week you could also read in the bitcoin news that institutional crypto investment products saw their largest inflow in 14 weeks. In principle, institutional investors do not look at short-term price movements, but mainly buy asset what they believe in in the long run.