Institutional Interest in Crypto Grows, Even During Bear Market

For some time now, we have seen that the crypto market is increasingly embraced by large, institutional investors. No longer do these parties stand on the sidelines and the world of cryptocurrencies less and less seen as the ‘Wild West’. A new study shows that institutional investors are slowly becoming more and more attracted to the crypto market.

Bitcoin and Ethereum Popular Among Institutions

The research was conducted by Cointelegraph Research and questioned at least 84 professional investors about their attitude towards the crypto industry. Collectively, these investors have a whopping $316 billion in assets under management. So we can talk about big players here.

Out the research It turns out that of this $316 billion, 3.3% has already been allocated to crypto products. That translates to about $10 billion. This is an average, because according to Cointelegraph, there were a few institutions that had invested more than 50% of their portfolio in cryptocurrencies.

According to these companies, the opportunity to earn huge returns was the main reason for investing in cryptocurrencies. This was of great importance to 44% of those surveyed when investing in crypto. Diversification and belief in the technology behind crypto was also important to many professional investors.

It is not surprising that in particular bitcoin (BTC) was popular among investors. Of the parties that already had cryptocurrencies on their balance sheet, 94% had a position in bitcoin. Ethereum (ETH) was in second place with 75%.

Direct exposure to crypto

What stood out in the survey is the fact that the companies surveyed stated that they were mainly interested in investing directly in cryptocurrencies through an exchange. Indirect investment products and ETFs were much less popular. At least 55% indicated that they prefer to knock on an exchange, while only 10% are interested in crypto ETFs.

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In the end, it’s the institutions that really have deep pockets. The fact that such parties are still starting to grow more interest in the crypto market during the current bear market can therefore be called downright positive.

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