Despite the bear market in cryptocurrencies and an uncertain regulatory environment, professional investor interest in crypto has not wavered, according to a recent survey by Laser Digital, Nomura’s digital assets subsidiary. As many as 96% of the surveyed investors, who work for pension funds, wealth managers, family offices, hedge funds, and investment funds, see digital assets as representing an investment diversification opportunity alongside traditional asset classes such as fixed income, cash, equities, and commodities. These investors are prepared to allocate as much as 5% of their investments in digital assets.
Collectively, professional investors manage an impressive $4.95 trillion in assets. Laser Digital conducted its poll with 303 participants interviewed online during April, from major financial markets worldwide. The survey findings demonstrate a significant level of confidence in digital assets, with the majority of institutional investors recognizing their potential to diversify and benefit portfolios.
In fact, 82% of the surveyed investors hold a positive outlook on bitcoin and ether, while 88% admitted that they or their clients are contemplating investing in digital assets. However, this enthusiasm for digital assets does not necessarily translate to an eagerness for memecoins like PEPE or DOGE. Instead, these investors express a preference for more regulated products such as exchange-traded funds (ETFs) .
A crucial aspect for these investors, with 90% agreement, is the backing of a major traditional financial institution for any digital asset fund or investment vehicle before they would even take it into consideration. This preference might prove promising for bitcoin ETF proposals such as BlackRock’s.
Despite the seemingly positive indicators from this survey, it’s essential to approach this industry with a healthy dose of skepticism. The current regulatory environment remains uncertain and can cause fluctuations in the market. Additionally, investor enthusiasm might not cover all types of digital assets; they may lean more towards regulated products rather than relatively obscure memecoins.
In conclusion, while the survey conducted by Laser Digital shows significant interest in digital assets among professional investors, it’s vital to consider the ever-changing landscape of the crypto market and the broader regulatory environment. Investors seem to value diversification in their portfolios with digital assets, but they also prefer established financial institution backing and regulated products.
Source: Coindesk
