Investors want crypto, but not without TradFi backing: Nomura survey
Professional investors are still keen on crypto but want to see backing from large traditional financial institutions before taking the plunge themselves, a survey from Nomura’s digital asset arm has revealed.
Institutional investor interest in crypto has stalled in recent weeks due to increasing regulatory uncertainty in the United States and its regulatory crackdown on the wider industry.
In the Laser Digital Investor Survey conducted in April, 90% of professional investors polled said that it was important to have the backing of a “large traditional financial institution” for any crypto asset fund or investment vehicle before they or their clients would consider putting money into it.
However, a whopping 96% of them regarded digital assets as “representing an investment diversification opportunity” in addition to traditional asset classes such as fixed income, cash, equities, and commodities.
Industry observers have predicted an increase in institutional investment following the BlackRock spot ETF application.
With more accessibility and institutional involvement, the bull's roar will only get louder.
Furthermore, 82% of the professional investors interviewed were optimistic about the crypto asset class in general over the next 12 months. They specifically mentioned Bitcoin (BTC) and Ethereum (ETH) with almost half of the respondents regarding the pair as the foundation of the Web3 economy and a “long-lasting source of investment opportunities.”
Dr. Jez Mohideen, CEO of Laser Digital said the study shows that institutional investors see a “clear role for digital assets in the investment management landscape and the benefits they can bring, such as greater diversification of portfolios.”
However, around three-quarters of
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