A recent survey showed that institutional investors are optimistic that the US Securities and Exchange Commission (SEC) will have greater authority to regulate the cryptocurrency market. They believe that if the Securities and Exchange Commission is given additional powers, the price of cryptocurrencies will be positively affected.
What Institutional Investors Think About Crypto
Nickel Digital Asset Management, a European regulated digital asset hedge fund manager, recently released a report on institutional adoption of crypto assets.
The report includes surveys and interviews with 50 wealth managers and 50 institutional investors across the US, UK, Germany, France and the UAE. They collectively manage approximately $108.4 billion.
The report shows that security concerns top the list of reasons why institutional investors are skeptical about investing in crypto assets. According to the survey results, 79% of all respondents see asset preservation as the main consideration for investing in the crypto space. The report also indicates the following:
This was followed by 67% who said price volatility, 56% said market value and 49% said the regulatory environment.
“12% also included the carbon footprint of Bitcoin and other cryptocurrencies in their top three reasons not to invest,” the report adds.
Respondents were also asked about coding regulation. SEC Chairman Gary Gensler has called on Congress to give the Securities and Exchange Commission more powers to regulate cryptocurrency exchanges and activities such as trading and lending.
The majority of respondents are optimistic about the potential for the SEC to be empowered with more power to regulate crypto assets. Among them, 76% expect grants this year.
The report details:
If the SEC were to grant these additional powers, 73% of institutional investors and wealth managers believe it would have a positive impact on the price of crypto and digital assets, and 32% believe it would have a very positive impact.
Do you think the SEC should have more power to regulate the crypto space? Let us know in the comments section below.
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