These are the 4 top crypto concerns holding back institutional investors, survey says | Currency News | Financial and Business News

While digital assets are gaining mainstream acceptance, institutional investors and wealth managers still have concerns.

At the top of the list is crypto security, which has outpaced regulatory uncertainty and price volatility, according to a report commissioned by Nickel Digital Asset Management first reported by Bloomberg.

After interviewing 50 wealth managers and 50 institutional investors across the US, UK, Germany, France and the UAE who collectively manage approximately $108.4 billion in assets, here are their top four concerns:

  • 79% cited asset security as a primary consideration
  • 67% expressed a level of price apprehension in price fluctuations
  • 56% said it’s market value
  • 49% said this is a regulatory uncertainty

“Our research shows that institutional investors have correctly identified custodianship and security as a critical differentiating factor for this unique asset class,” said Henry Howell, Head of Business Development at Nickel Digital.

Meanwhile, only 12% said they are concerned about the carbon footprint of cryptocurrencies, which require massive amounts of power for servers to process transactions and mine new tokens.

Nickel Digital, Europe’s largest hedge fund manager for regulated digital assets, said 76% of survey respondents are optimistic that Gary Gensler, chairman of the US Securities and Exchange Commission, will be able to persuade Congress to give his agency more power to govern. digital assets by next year.

“If the SEC were to grant these additional powers, 73% of institutional investors and wealth managers believe that this would have a positive impact on the price of crypto and digital assets – 32% think it would have a very positive impact,” the study said. .

Gensler, who was taking a crypto course at MIT, said he was neutral or even fascinated by technology but was not neutral about investor protection. He also said that he believes that digital assets can boost economic progress and become more widely used.