Institutional Investors Buy During Crypto Winter: Survey

A survey of institutional investors suggests that their cryptocurrency allocations have increased over the past year despite the industry going through a prolonged crypto winter.

One sponsored by Coinbase investigation published on November 22 and conducted between September 21 and October 27, found that 62% of institutional investors in crypto had increased their allocations over the past 12 months.

In comparison, only 12% had reduced their exposure to crypto, indicating that most institutional investors could be bullish on long-term digital assets despite the price drop, according to the survey.

More than half of investors surveyed said they currently use or plan to use a buy and hold approach to cryptocurrencies, with the belief that crypto prices will remain stable and constrained over the next 12 month.

Additionally, 58% of respondents said they plan to increase their portfolio allocation to crypto over the next three years, with nearly half “strongly agreeing” that Crypto valuations will rise in the long run.

As has been widely reported before, regulatory uncertainty was once again the most important factor. investors worried when assessing whether to invest in crypto, especially among those planning to invest in the next 12 months, where 64% expressed concern.

The representative sample for the Coinbase survey was made up of 140 US-based institutional investors, who collectively have assets under management totaling approximately $2.6 trillion. The survey was conducted by B2B publisher Institutional Investor’s Custom Research Lab.

Related: $138 billion investment manager Man Group to launch crypto hedge fund: report

In October, a survey of institutional investors by Fidelity Investments subsidiary, Fidelity Digital Assets, published on October 27 had similar resultsand in an interview with Cointelegraph, Chris Kuiper, head of research at Fidelity, noted:

“They’re agnostic to some of this volatility and crazy prices because they’re looking at it from a very long-term perspective. They’re looking at the next few years, five years, a decade or more.

It should be noted that both of these surveys were conducted prior to the collapse of FTX, which CoinShares claims led to a record increase in short-term investment productswhile total assets under management for institutional crypto investors now stand at $22 billion, the lowest in two years.

On Nov. 21, CoinShares’ James Butterfill said the surge in short-term investing is likely “a direct result of the ongoing fallout from the FTX collapse.”