Institutional Investors Have Increased Crypto Allocations: Survey.
62% of institutional investors, according to a Coinbase-sponsored survey, who invested in crypto had increased their allocations over the past 12 months. The increase comes despite the industry going through a prolonged crypto winter.
The survey which was conducted between September 21 and October 27 established that only 12% had decreased their crypto exposure. This suggests that most institutional investors may be bullish on digital assets in the long term despite prices falling. The survey stated that more than half of the investors were currently or planning to use a buy-and-hold approach for cryptocurrencies. They believe crypto prices will stay flat and range-bound over the next 12 months.
Moreover, 58% of respondents expect to increase their portfolio’s allocation to crypto over the next three months. And about half of the respondents strongly agree that crypto valuations will increase over the long term. But regulatory uncertainty remains the factor that most investors are concerned about. Investors, weighing up whether to invest or not in the next 12 months, are troubled.
A similar survey had been conducted by Fidelity Digital Assets in October. Chris Kuiper, Fidelity’s head of research, said they are agnostic to some of the crazy volatility and price because they are looking at it from a very long-term perspective. It should be noted that both surveys were conducted before the fall of FTX.