Published: Today, 04 July 2023, 09:26
Cryptocurrency. Illustrative photo: NUR.KZ/Vladimir Tretyakov
The crypto asset market is risky and is often perceived as an unreliable investment. However, institutional investors continue to invest in this industry. More details in the material NUR.KZ.
The distrust of cryptocurrency among retail investors is due to its high volatility – prices can change dramatically, bringing huge profits or a commensurate loss.
However, according to data from the Institutional Crypto Outlook Survey from Binance Research and Binance VIP & Institutional, 63.5% of VIPs and institutional crypto exchange users surveyed have a positive view of crypto assets over the next 12 months.
And the vast majority (88%) of respondents expressed positive sentiment towards crypto assets for the next decade.
Why do institutionalists believe in crypto?
Institutional investors are organizations or groups of companies that specialize in investment activities for profit. That is, they invest their clients’ money in various financial instruments to generate income.
From March 31 to May 15, 2023, a global survey of 208 Binance VIPs and institutional users was conducted. It examined the demographics of the respondents, as well as their attitudes, preferences, acceptance, and motives towards investing in cryptocurrencies.
Cryptocurrency. Illustrative photo: NUR.KZ/Vladimir Tretyakov
The survey also showed that institutional users of the crypto exchange believe that more real use cases (26.9%) and improved regulatory clarity (25.3%) will drive crypto adoption rather than higher quotes (3.4%).
“This may indicate that institutional participation is long-term and therefore less responsive to short-term market cycles,” the researchers note.
So, despite market events over the past year, the majority (47.1%) of investors retained their assets in crypto, and more than a third (35.6%) increased them. And only a minority (17.3%) reduced the share of their digital assets.
Previously, we talked about how to buy cryptocurrency.
What will happen to the crypto market and bitcoin
According to the survey findings, the majority of respondents expect to increase (50.0%) or maintain (45.7%) their placement over the next 12 months. Only 4.3% of investors said they expected to reduce their stake in their investment portfolios.
That is, most of the institutional investors intend to continue investing in cryptocurrencies. At the same time, there is a more positive attitude towards bitcoin.
Bitcoin and dollars. Illustrative photo: volody10/Getty Images
“While perceptions of bitcoin and crypto haven’t changed much over the past year (44.7% and 47.8% respectively), the majority of respondents are more positive about bitcoin compared to the broader crypto sector (47.3% vs. 33.2 %).
Similarly, while 22.1% of investors became more negative about cryptocurrencies in general, 4.8% were more negative about bitcoin.
Also, 42.8% of investors indicated that the possibility of obtaining high returns from investments is the most convincing argument in favor of investing in cryptocurrencies.
They were followed by 37.5% of investors who believe that getting long-term access to new technologies is the main motivation.
At the same time, centralized exchanges (90.5%) remain the main platforms for institutional cryptocurrency trading. And when choosing the right crypto exchange, the main factors were liquidity (28.0%), security (26.0%) and reputation (22.5%).
Original article:
2023-07-04 03:26:04
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