New research by a leading digital asset management firm has identified the top reasons why blue-chip investors have held back from investing in the crypto markets.
A recent survey conducted by Nickel Digital Asset Management polled 100 institutional investors and professional wealth managers across the US, Europe and the United Arab Emirates who collectively manage nearly $110 billion worth of assets.
The survey found that the top four reasons the investors have yet to dive into crypto assets are security concerns, price volatility, market cap and the current regulatory environment.
“79% cited asset security as one of the top three reasons for not investing 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 that the high amount of carbon footprints emitted from digital assets is one of their top three reasons.
Henry Howell, head of business at Nickel Digital, says
“Our research shows that institutional investors have correctly identified custody and security as a critical differentiator to this unique asset class.”
However, many of those surveyed have optimistic views about what potential upcoming regulations could do for the crypto industry and the price of digital assets.
Just over 75% of those surveyed believe that Congress will grant the U.S. Securities and Exchange Commission (SEC) the authority to police crypto trading and lending by next year. Furthermore, 73% believe that regulations would have a positive impact on the price of digital assets, while 32% say it would have an even larger positive effect.
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