A research on institutional use of crypto assets was recently produced by Nickel Digital Asset Management, a regulated European digital asset hedge fund manager.
A survey and interviews with 50 wealth managers and institutional investors from the United States, the United Kingdom, Germany, France, and the United Arab Emirates are included in the report (UAE). They are in charge of $108.4 billion in total.
Security concerns are at the top of the list of reasons why institutional investors are hesitant to engage in crypto assets, according to the survey. According to the poll results, asset custody is the most important factor to consider when investing in the crypto area for 79 percent of all respondents.
The report further notes:
“This was followed by 67 percent who said price volatility, 56 percent who cited market cap, and 49 percent who said the regulatory environment.”
“Further 12 percent included the carbon footprint from Bitcoin and other cryptocurrencies in their top three reasons for not investing,” the report adds.
The topic of cryptocurrency regulation was also brought up with the respondents. Gary Gensler, the chairman of the Securities and Exchange Commission, has asked Congress to give the SEC broader authority to regulate crypto exchanges and operations such as trading and lending.
The majority of respondents are confident about the SEC’s ability to control crypto assets if it is given more powers. 76 percent of them believe it will be approved this year.
The report detailed:
“If the SEC is granted these extra powers, 73 percent of institutional investors and wealth managers believe this will have a positive impact on the price of crypto and digital assets and 32 percent believe it will have a very positive effect.”