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.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any 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