New research from a leading digital asset management company has identified the main reasons blue-chip investors have refrained from investing in the crypto markets.
A recent survey conducted by Nickel Digital Asset Management interviewed 100 institutional investors and professional wealth managers in the United States, Europe and the United Arab Emirates, who collectively manage nearly $ 110 billion in assets.
The survey found that the top four reasons investors have yet to dive into crypto assets are security concerns, price volatility, market capitalization, and the current regulatory environment.
â79% cited asset security as one of the top three reasons not to invest in cryptocurrencies and digital assets. This was followed by 67% who said price volatility, 56% who cited market cap and 49% who said the regulatory environment.
Another 12% said the high amount of carbon footprints emitted by digital assets is one of their top three reasons.
Henry Howell, CEO at Nickel Digital, says
“Our research shows that institutional investors have correctly identified custody and security as critical differentiators of this unique asset class.”
However, many of those polled have an optimistic view of what upcoming regulations could do for the crypto industry and the price of digital assets.
Just over 75% of those polled believe Congress will grant the U.S. Securities and Exchange Commission (SEC) the power to control cryptocurrency trading and lending by next year. Additionally, 73% believe that regulation would have a positive impact on the price of digital assets, while 32% say it would have an even greater positive effect.
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high risk investments in Bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in Affiliate Marketing.
Featured Image: Shutterstock / sergeymansurov / Sensvector