The majority of the institutional investors are of the view that the prominent reason to abstain a lot of people from entering the crypto market is the custodial services as well as the virtual-asset security. In a recently carried out research, Nickel Digital Asset Management (the conductor) pointed out that approximately 75% of the wealth managers and institutional investors stated that the most significant factor is the virtual-currency security which prevents the people from getting into the space of cryptocurrency.
Institutional investors are under-confident
Nickel Digital Asset Management, an investment manager, based in the United Kingdom, inquired from up to 100 wealth managers as well as internationally recognized institutional investors to figure out their noticeable concerns regarding crypto. The participants included in the research were related to well-built economies like Germany, France, the UAE, the UK, and the USA.
A clear majority of the participants comprising 76%, answered that the custodial, as well as the security, are the important aspects because of which the investors are held back instead of investing into crypto. The CEO and co-founder of Nickel Digital, Anatoly Crachilov, stated that the results drawn by them mention the custody and the security of the crypto assets to be the highest concerns for many of the investors even though many visionary investors are growing their experience into the digital assets.
A comparatively lesser percentage of the participants noted that the major issue for the crypto market is the environment of its regulation. While some others suggested that the deficiency in transparency, as well as the volatility of the crypto assets, count as noteworthy hindrances. Regardless of the disappointing characteristics, Carchilov focused the attention on the statistics that mention a considerable amount of several big institutions that have recently entered the space of the crypto community, which should pave the way for a better level of security.
Great expectations from crypto
Recently this month, similar research has already been directed by Nickel Digital Asset Management; however, the firm was focused on the interest of the institutional investors in growing their exposure in cryptocurrency. The respondents were selected from the same institutions again for this time.
The results pointed out that nearly 82% of the participants, who have previously invested in the field of crypto assets, would broaden their crypto investment from 2021 to 2023. 40% of them confirmed that they want to dramatically expedite their holdings.