Institutional investors plan to focus more on crypto assets over the next five years, according to a new report from cryptocurrency insurance company Evertas.
Evertas surveyed investors that oversee some $78.4 billion worth of collective assets, and 64% of respondents reported that they expect a slight rise in crypto investments from pension funds, family offices, insurers, and sovereign wealth funds, Decrypt reports.
A further 26% of those surveyed think they will likely “dramatically” increase their investments in Bitcoin and other cryptos over the next five years. This means that in total 90% of surveyed institutional investors expect an increase in their crypto holdings in the next five years.
The survey was conducted in July by market research company Pureprofile and involved 50 institutional investors, 25 in the US and 25 in the UK.
Asked why they anticipate increased exposure to crypto investments, 84% of respondents said that improved regulatory infrastructure will make them more viable, while 80% said that the expanding crypto market will improve liquidity.
Furthermore, 76% added that they believe there will be more mainstream financial services companies and fund managers getting into crypto, and the same percentage said that they believe negative interest rates and yields on bonds will also push them into (or further into) crypto asset investments.
Even so, there is still lingering concern from the surveyed investors about investing in cryptocurrency. Some 56% of respondents said they were “very concerned” about the lack of suitable insurance coverage options for crypto investments, while 54% were likewise “very concerned” about the working practices and compliance procedures of crypto companies that provide services to institutional investors.