A survey of 141 institutional investors has shown that almost three-quarters believe cryptocurrencies have a future in the financial markets. The research from Greenwich Associates showed that 72% believed digital assets will develop, with 38% saying that regulatory support will develop leading to growth and innovation. In comparison, only 17% think cryptocurrencies will disappear, while just 2% believe they will disintermediate traditional finance. “Established market participants and emerging players are focusing on product development efforts in the institutional market,” said the report author Richard Johnson, vice president in Greenwich Associates’ market structure and technology practice. “The question then becomes whether an institutional version of crypto, with trusted third-party intermediaries, can continue to live up to the original promise of decentralisation and disruption.” The survey responses came from a variety of asset managers, investment banks, brokers, and hedge funds across Europe, North America and Asia. The majority of responses came from traditional asset managers, who have so far been relatively quiet on the topic of cryptocurrencies, taking a ‘wait-and-see’ approach. Hedge funds and family offices have been far more likely to invest at this point in time, according to a range of experts. Despite the recent bear market, institutional involvement still appears to be on the horizon, though issues around custody, volatility and regulation rumble on.
Almost three-quarters of institutional investors expect cryptocurrencies to develop in the financial markets, according to a survey by Greenwich Associates. The survey also found that 17% of respondents believe regulatory support will help growth and innovation. However, 38% of expect cryptocurrencies to disappear, while 2% expect them to displace conventional finance. Greenwich surveyed 141 asset managers, investment banks, hedge funds and brokers across Asia, North America and Europe.