The vast majority (85 per cent) of institutional investors who already engage with Bitcoin plan to increase their investment in the cryptocurrency over the next two years, according to a survey commissioned by Nickel Digital Asset Management.
Additionally between now and 2023, 72 per cent of those surveyed expect professional investors in general to invest in Bitcoin for the first time or increase their exposure. When asked why they think professional investors will increase their exposure to cryptocurrencies, the main reason given by 56 per cent of respondents was anticipated growth in valuations.
In all, 50 institutional investors and 50 wealth managers from the U.S., U.K., Germany and Switzerland were interviewed for the survey in January.
The second most popular reason given for why investors will increase their exposure to cryptocurrency is their ability to provide a tail hedge against excess monetary supply and currency debasement, as well as a hedge against inflation — a view expressed by 40 per cent of respondents. Plus, 40 per cent of respondents who said the size of the market crossed the minimum threshold for mainstream institutional investors to start allocating to this market, followed by 38 per cent who cited an improvement in the regulatory infrastructure for cryptoassets.
Meanwhile, 21 per cent of respondents expect the value of Bitcoin to rise dramatically this year and a further 56 per cent think there will be a slight rise in valuation.