29th September 2021 > > Institutional adoption.

tl;dr

A wall of institutional cash is heading our way.

Market Snap

Market Wrap

Markets seem a little vulnerable and nervous for now, a situation that is unlikely to last for any extended period of time.

Occasional Series – 270,000+ words and counting

The CCC has now long passed the landmark of a quarter of a million words bringing the crypto revolution to the world, in our own inimitable style.

I am very pleased I bought a (relatively) expensive and robust keyboard some time ago.

Curious Cryptos’ Commentary – Institutional adoption of BTC

I have always believed surveys and polls should be treated with a certain amount of scepticism. But in trying to assess the pace and scope of institutional adoption of BTC and other cryptos, it doesn’t make sense to wait until after it has happened.

European investment manager Nickel Digital Asset Management (https://nickel.digital/) has released the results of a survey into the expectations of institutional investors with regards to cryptos. It is to be noted that Nickel can hardly be described as agnostic towards the results, but still, they make for interesting reading.

The survey population comprised 50 wealth managers and 50 institutional investors from Europe, US, and UAE.

The headline number is that nearly two-thirds of those investors with ZERO exposure to BTC said that they expect to make their first investments in cryptos within the next year.

Rather unsurprisingly, the motivation for doing so was the potential for capital increase in the long term.

What was also interesting, to me at least, are the reasons stated for having the confidence to invest in cryptos.

41% of respondents quoted the improved regulatory environment will facilitate their investment, a theme for which the CCC has been banging the drum very loudly. Specific mention was also made of the improvement in custodial solutions.

44% of respondents cited growing confidence in cryptos as an asset class simply because of the increasing adoption amongst other corporates and fund managers, suggesting that this virtuous circle can only accelerate institutional adoption.

Nickel’s head of business development, Henry Howell, summarised the position as follows:

“There is no doubt that the crypto assets market is becoming more mainstream in the institutional and wealth management sectors”.

Which is music to all our ears.