A survey of institutional investors shows that their investments in cryptocurrencies have increased over the past year, despite the fact that the industry is going through a protracted crypto winter.
A Coinbase-sponsored survey released Nov. 22 and conducted between Sept. 21 and Oct. 27 found that 62% of institutional investors who invested in crypto increased their holdings in the last 12 months.
In comparison, according to the survey, only 12% have reduced their crypto activity, indicating that most institutional investors may be optimistic about digital assets in the long term, despite the price drop.
More than half of the investors surveyed said they currently or plan to use a buy and hold approach for cryptocurrencies, believing that crypto prices will remain flat and range over the next 12 months.
In addition, 58% of respondents said they expect their portfolio share of crypto to increase over the next three years, with almost half “strongly agreeing” that crypto valuation will rise in the long term.
As widely reported before, regulatory uncertainty has once again been a factor that has been a concern for most investors when weighing whether to invest in crypto, especially among those planning to invest in the next 12 months, where 64% expressed concern.
The representative sample of the Coinbase survey consisted of 140 institutional investors based in the United States who collectively own about $2.6 trillion in assets under management. The survey was conducted by Institutional Investor’s Custom Research Lab.
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In October, a survey of institutional investors conducted by Fidelity Investments subsidiary Fidelity Digital Assets released on October 27 came up with similar results, and in an interview with , Chris Kuiper, head of research at Fidelity, noted:
“They are indifferent to this crazy volatility and price because they look at it from a very long-term perspective. They look forward to the coming years, five years, a decade or more.”
It is worth noting that both of these surveys were conducted prior to the FTX crash, which, according to CoinShares, led to a record surge in short investment products, while total assets under management by crypto institutional investors are now $22 billion, the lowest ever. indicator. in two years.
James Butterfill of CoinShares said on Nov. 21 that the increase in short investments is likely “a direct result of the ongoing effects of the FTX crash.”