Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Institutional Investors Increase Allocations During Crypto Winter, Long-Term Price Outlook Positive – Featured Bitcoin News
A recent survey sponsored by Nasdaq-listed crypto exchange Coinbase shows that institutional investors increased their allocations during the crypto winter. The firm stressed that it is “a strong signal of acceptance of crypto as an asset class” and “the long-term price outlook remains positive.”
Coinbase’s Institutional Investor Survey
Nasdaq-listed cryptocurrency exchange Coinbase on Thursday published the findings of a survey it sponsored to understand how decision makers at US institutions view digital assets. The survey was conducted independently by the Institutional Investor Custom Research Lab between 21 September and 27 October.
A total of 140 institutional investors in the United States participated in the survey, representing around $2.6 trillion in assets under management. Coinbase was not involved in obtaining the respondents.
Coinbase wrote:
Institutional investors increased their allocations during the crypto winter, and many used this as an opportunity to learn and build for the future.
“62% of investors currently invested in crypto increased their allocations in the past 12 months (versus 12% who decreased their allocations). This is evidence that institutional investors have continued to take a long-term view of the asset class even as prices have fallen , says the crypto firm.
In addition, Coinbase shared:
58% of investors expect to increase their allocations over the next three years. A majority of investors (59%) use or plan to use a buy-and-hold approach.
“Overall sentiment towards digital assets has remained positive with 72% supporting the view that digital assets are here to stay (86% of those currently invested in crypto and 64% of those planning to invest),” continued Coinbase and elaborates:
Given the current climate, this is a strong signal of acceptance of crypto as an asset class.
“While some investors categorize digital assets as either real assets/commodities or as alternative assets, more investors create their own category for crypto or classify crypto as part of innovation or new technologies. This is also evidence of a long-term opportunity that may emerge in the future,” Coinbase further described.
Despite the crypto winter, Coinbase said institutional investors remain bullish on crypto in the long term, saying:
The long-term price outlook remains positive with 71% of investors saying they expect digital asset valuations to increase over the long term.
What do you think of these findings from Coinbase? Let us know in the comments section below.
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