Big Four accounting firm KPMG says that investors are warming up to crypto as a way to hedge against the debasement of fiat currencies by central banks.
In a new report, KPMG looks at the Canadian market and says that in 2023, half of financial service providers polled in the country offered crypto asset services, up from 41% in 2021.
[adinserter block="1"]The study also finds that 39% of Canadian institutional investors had crypto exposure in 2023, rising from 31% in 2021.
Kareem Sadek, Emerging Technology Risk leader and co-leader of KPMG’s Digital Assets practice, says that Canadian institutional investors have become more comfortable with crypto for two key reasons.
“Canada has played a leading role in creating a regulatory environment that supports innovation in crypto assets, from approving the first Bitcoin and Ethereum exchange-traded funds to allowing sophisticated strategies involving derivatives and Ethereum staking. Those actions, along with rising prices for cryptoassets are likely reasons why institutional investors have been increasingly attracted to the crypto space.”
Kunal Bhasin, partner and co-leader of KPMG in Canada’s Digital Assets practice, says that institutions in Canada are also looking at crypto assets as a means to hedge against the debasement of national currencies.
“Rising US debt combined with increasing inflation likely provided a catalyst for the crypto rally of 2023, and it appears investors are looking for alternative asset classes that act as a debasement hedge and a reliable store of value. Our survey findings suggest crypto assets are increasingly seen as an investible alternative asset class among such institutional investors and financial services organizations in Canada.”
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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 assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong
