Security and Regulations Main Hurdle for Institutional Investors Regarding Crypto Investments (Survey)

According to recent research conducted by Nickel Digital Asset Management, nearly 75% of institutional investors and wealth managers stated that the security of virtual currencies is a “significant” hurdle stopping many individuals from entering the crypto space.

Low Confidence among Institutional Investors

The UK-based investment manager – Nickel Digital Asset Management – asked 100 global institutional investors and wealth managers to determine their biggest concerns related to crypto. The research included participants from well-developed economies such as the USA, the UK, the UAE, France, and Germany, who collectively own $275 billion in AUM.

The vast majority of them, with 76%, responded that concerns about the security of custodial services are the main factor that stops investors from jumping on the crypto bandwagon. Anatoly Crachilov – co-founder and CEO of Nickel Digital – noted:

“Whilst many forward-looking institutional investors are increasing their exposure to digital assets, our findings show that concerns around security and custody of these assets remain a top concern for many other allocators.”

A relatively smaller percentage of the respondents cited the regulatory environment for the crypto market as a major issue, while others opined that the lack of transparency and the volatile nature of the digital assets are significant obstacles.

Despite the negative statistics, Crachilov reminded that many large institutions had entered the space recently, which should lead to an increased level of security:


“We are now seeing Fidelity, BNY Mellon, and State Street entering the market, thus further reinforcing market infrastructure. All of this increases the confidence levels in the sector and lead to ever-growing allocations to this fast-developing asset class.”

High Hopes on Crypto on The Previous Survey

Earlier this month, Nickel Digital Asset Management conducted similar research, but that time the company asked if the institutional investors expect to increase their crypto exposure. The participants were again from the same countries as the aforementioned survey.

Per the results, 82% of the respondents who have already invested in digital assets will expand their crypto exposure between now and 2023. Asked whether they expect to “dramatically increase their holdings,” 40% said “yes.”

Nickel Digital Asset Management revealed that the main reason why the participants would invest more in cryptocurrencies is their long-term capital growth prospect – an explanation supported by 58% of the respondents. Interestingly, 37% stated they would copycat a giant corporation and allocate funds into the crypto market only if they see such an example.

Those who would sell their entire digital assets position were just 1% of the respondents, while 7% believe they should reduce their exposure.


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‘Dogecoin Is Money’—Elon Musk Shares Bullish Doge Theory Amid $200 Billion Bitcoin And Crypto Price Rally

Bitcoin and cryptocurrencies have surged this week after two technology giants signaled their support for crypto (subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains).

The bitcoin price has added almost 10% over the last week, helped by a hotly-anticipated live discussion on bitcoin and crypto between Tesla billionaire Elon Musk and Twitter’s Jack Dorsey—with the meme-based dogecoin and the second-largest cryptocurrency ethereum arguably the event’s surprise winners.

Now, as the dogecoin price nears 20 cents per doge token after crashing under the psychological level earlier this month, Musk has shared a dogecoin theory that proclaims the memecoin isn’t a speculative asset but rather “dogecoin is money.”

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“I’m trying to tell you dogecoin is money,” the meme, shared by Musk on Twitter, reads; a twist on a popular Matrix movie quote that asks whether dogecoin could make someone “a lot of money.”

Musk’s tweet briefly sent the dogecoin price over 20 cents per doge token on popular U.S. crypto exchange Coinbase—which added dogecoin support just last month—but it quickly fell back, trading in line with today’s more-or-less flat bitcoin and cryptocurrency market.

After soaring to over 70 cents in May, riding a Musk and influencer-fueled rally, the dogecoin price has crashed almost 75%. However, dogecoin’s still up a staggering 6,000% on this time last year due to speculators piling into the Shiba Inu dog-based cryptocurrency.

This week, speaking during the Crypto Council for Innovation’s ₿ Word event, Musk elaborated on ideas that had previously been floated to upgrade dogecoin via ethereum to “max transaction rates and lower transaction costs.”

“There may be some merit in combining something like ethereum and dogecoin,” Musk said, revealing he owns some ethereum tokens in addition to his bitcoin and dogecoin.

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“Bitcoin by itself simply cannot scale to become the monetary system for the world at base layer,” Musk said, arguing bitcoin will “struggle to become peer-to-peer cash” without the adoption of a second layer network.

“There’s some merit in considering something that has higher max transaction rate and lower transaction cost and seeing how far you can take a single-layer network with exchanges acting as a de facto second layer,” Musk said. “I think you could take that further than people realize and as bandwidth increases over time latency decreases.”

A long-time supporter of dogecoin, Musk has this year fully embraced the somewhat satirical cryptocurrency that was created in 2013 as a “joke,” issuing calls for upgrades and promising his rocket company SpaceX will put a “literal dogecoin on the literal moon.”

During this week’s online chat between Musk, Twitter’s Jack Dorsey and Ark Invest’s Cathie Wood, it was also revealed SpaceX has joined Tesla in holding bitcoin, though Musk didn’t say how much.


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Top 5 cryptocurrencies to watch this week: BTC, ETH, ICP, AAVE, LUNA

Bitcoin’s (BTC) recovery is facing stiff resistance near the $35,000 mark but Bloomberg Intelligence senior commodity strategist Mike McGlone remains bullish. In his latest analysis, McGlone said that the probability of Bitcoin hitting $60,000 is greater than the price dropping to $20,000.

Institutional investors seem to be using the weakness in Bitcoin to build their positions. Cathie Wood’s Ark Invest added more than 450,000 shares of Grayscale Bitcoin Trust in two separate buys in the past week, increasing their holdings to more than 9 million shares. In addition, Edge Wealth Management and Rothschild Investment Corp also added GBTC shares to their portfolio.

Crypto market data daily view. Source: Coin360

However, not everyone is so bullish on Bitcoin. Analysts at Delphi Digital have pointed out that Bitcoin is testing the support at the 12-month moving average and a break below it could result in further downside. Kevin Kelly, a certified financial analyst at Delphi Digital, said a break below $30,000 could prove to be bearish for Bitcoin.

If Bitcoin remains range-bound, traders are likely to shift their focus on select altcoins, which may surprise to the upside. Let’s study the charts of the top-5 cryptocurrencies that may continue to attract buying interest in the short term.