A poll has found 22% of institutional investors are likely to buy cryptocurrency in the future.
A survey carried out by JPMorgan found that one in five institutional investors at firms that don’t currently trade in cryptocurrency believe their companies are likely to do so in future.
The survey of more than 3,400 investors representing 1,500 institutions, found that 11% of respondents work at firms that trade or invest in crypto, while 89% do not.
Promisingly however, twice as many institutions appear likely to invest into crypto ashan those who have already taken the plunge, signalling institutional money may continue to flow into the markets over the near-term.
Out of respondents from firms that do not trade or invest in crypto, 22% sa stated they believe their companies are likely to invest in digital currencies in the future.
While some analysts argue that sustained institutional buying will now keep the price of Bitcoin up $50,000 — a significant number of institutional investors survestill lack faith in cryptocurrency.
Asked for their opinion on crypto, 14% answered that it’s “probably rat position squared” and something to avoid, while 21% believe crypto is just a temporary fad. Just 7% of investors think it “will become one of the most important assets.”
The poll found that most institutions have security concerns, with 98% of respondents stating they believe fraud in the crypto world is “somewhat” or “very much prevalent.”
This appears to be major hurdle for institutional investors at the moment, with Damien Vanderwilt, co-president of Galaxy Digital, telling Bloomberg last month:
“When we think about the conversations we have with corporates and institutional clients and any part of those constituencies considering investing in the sector, the first order problem is safety and are the assets that they’re buying going to be safe and available and secure,”
However, these concerns aren’t worrying big players like Tesla and MicroStrategy, with both parties investing billions into crypto in 2021. MicroStrategy recent increased its BTC holdings by 27% in February, upping the number of it Bitcoin held in its treasury reserve to 90,531 BTC.