The crypto winter which started about eight months ago has raised much speculation about cryptocurrency adoption in the hearts of many.
However, with the series of circle lows that the market has hit, a survey has suggested that institutional investors are still buying digital assets and their cryptocurrency allocation has been on a linear increase since the prolonged crypto winter.
The Institutional Investor Digital Assets Outlook Survey which was published by Coinbase took a sample of 140 institutional investors for the research which was conducted between September 21st and October 27th which was way before the implosion of the FTX Derivatives Exchange. Altogether, these investors represented $2.6 trillion in assets under management (AUM).
Notably, the result from the survey indicates that within the past twelve months, 62% of institutional investors have increased their crypto allocations. On the other hand, 12% have reduced their allocations. Over 50% of the surveyed sample said they had plans or were already leveraging the hodl strategy for cryptocurrency.
This last category is optimistic that prices will stay flat and range-bound over the next coming months.
Another 58% plan to increase their crypto allocation in the next three years with half of them strongly optimistic about the rise in the value of crypto assets in the long run. Overall, 72% of respondents held crypto assets in a positive stance saying digital assets are here to stay.
Institutional Investors See Long-Term Bullish Trend
These results suggest that most institutional investors see the long-term bullishness of digital assets and have been earnestly building up their portfolios waiting for that time. The survey stated, “Given the current climate, this is a strong signal of the acceptance of crypto as an asset class.”
It was also discovered that among the several fears that crypto investors have, an uncertain regulatory framework was the most pronounced as over 64% raised concerns in this regard.
After a similar survey conducted in Hong Kong, it was seen that several institutional investors plan to either reduce or totally remove cryptocurrency from their investment portfolios. Crypto volatility and fluctuation were quoted as the reason behind their decision.
For the Coinbase survey, the institutional investors cited “improving funded status, accessing yield opportunities, and investing in innovative technology,” as the top three among many reasons for investing in crypto. Meanwhile, the Bank for International Settlements (BIS) survey shows that the rising price of Bitcoin (BTC) has contributed immensely to the rate of adoption.