The number of private crypto users is growing in several countries. But, crypto is increasingly of interest to institutions. Cointelegraph Research wanted to know how much institutions are investing in the crypto sector. The survey report reveals a consistent institutional infatuation with cryptocurrency. Companies and governments alone hold 1.39 million Bitcoins!
Institutions want crypto
In an effort to gauge the level of institutional adoption of crypto, our brethren at Cointelegraph conducted a survey of 84 major investors based in the United States, Asia and Europe. The research report resulting from these interviews reveals that institutions are investing in cryptocurrency much more than we think.
In fact, the survey reveals that:
- 43% of professional investors believe and hold cryptocurrency;
- 33% of institutions have an unfavorable view of crypto;
- 24% are neutral.
The number of professional crypto investors may increase in the future. Although they have not yet entered the crypto sector, 19% plan to do so in the next 12 months.
The share of cash invested in crypto is even lower and reveals the caution of institutional investors. While they manage the assets worth $316 billion, the professional investors surveyed invest only about $10.43 billion in crypto. This represents 3.3% of the cash is converted into cryptocurrency.
Cointelegraph‘s report also reveals institutional preference for certain cryptocurrencies over others.
Bitcoin is unsurprisingly the most widely held crypto among institutions. 94% of them hold the crypto queen. Institutional investors are also interested in other cryptocurrencies. This includes Ether (75%), stablecoins (31%), Polkadot (25%), Solana (13%) and Litecoin (13%).
As mentioned above, Bitcoin is the preferred cryptocurrency of professional investors.
Companies, Governments: they alone hold 1.39 million Bitcoins. This represents about 7.2% of the Bitcoins currently in circulation.
The top 10 institutional investors are listed below with the corresponding value of their investment.
The main barrier to institutional investment in crypto remains the lack of regulation. About 25% of professional investors say they have stopped buying bitcoin due to the lack of regulation.
Like private investors, institutions are increasingly joining the blockchain ecosystem. This bear market could be an opportunity to jump in and take full advantage of blockchain technology. This is in no way intended as investment advice. We encourage you to do your own research and of course check out our latest guide here on Coinpri.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.