Institutions ‘extremely interested’ in crypto ETFs, but buying has cooled: Survey
Institutional interest in cryptocurrencies hasn’t budged despite the market being down 60% from the all-time highs (ATH), as a majority of asset managers stated they’re “extremely interested” in crypto themed-Exchange Traded Funds (ETFs).
On April 3, financial services firm Brown Brothers Harriman (BBH) released its 2023 Global ETF Investor Survey which polled 325 institutional investors, financial advisors, and fund managers from the United States, United Kingdom, Europe and China.
It found nearly three-quarters of institutional investors claimed they’re “extremely” or “very” interested in crypto ETFs, but the effects of crypto winter have chilled their appetite as only a quarter said they’re expecting to increase allocation to crypto ETFs over the next 12 months, a 6% fall from 2022.
The findings of our 2023 Global ETF Investor survey are out. Explore the report to learn about the shifts ETF investors are making in the face of macro and market changes, and what the last decade in ETFs can tell us about the next ten years. https://t.co/KeTeAUfz8G#ETFs pic.twitter.com/ueDlwvynNQ
While crypto-themed ETFs fell down the priority list for some — nearly half still plan to “add” crypto ETFs to their portfolios this year to diversify investments.
BBH explained the rise in interest for crypto ETFs is partly due to fund managers learning to stomach the inevitable volatilities in the crypto market:
BBH believes a clearer crypto regulatory framework will further increase the demand for related ETF exposure as it will provide more “comfort” when doing business with the crypto sector:
More than 40% of the respondents claimed to manage assets worth more than $1 billion and over half said to have more than a quarter of their portfolio
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