More than 85 percent of institutional – that is, large and professional – investors in Bitcoin and other cryptocurrencies plan to increase the proportion of digital assets in their portfolios in the next two years, according to a survey by the Nickel Digital Asset Management cryptocurrency fund .
The survey was conducted in January 2021 among 50 managers of large funds and 50 investors with a total of $ 110 billion in funds under management . Respondents operate in Germany, Switzerland, USA and UK.
Recall that some large companies are already actively buying Bitcoin and other cryptocurrencies. In particular, we talked about seven giants whose management managed to transfer part of their reserves to BTC. And this list continues to grow: for example, at the beginning of the week it became known about the acquisition of 1170 bitcoins by the Norwegian holding company Aker ASA. She created a dedicated unit for investing in cryptocurrency startups and direct investment in coins.
However, MicroStrategy remains the most prominent example of consistent investment in BTC. Initially, she acquired 21,454 bitcoins in August 2020, but now her final balance is 91 thousand BTC.
Apparently, the example of these giants has inspired other investors. Bitcoin owners among companies are ready to invest in cryptocurrencies further.
Who buys bitcoins
Most of the investors surveyed expect Bitcoin and other cryptocurrencies to rise significantly in value over the next few years. 21 percent of respondents noted that BTC will continue to rise sharply in 2021, while 56 percent said that most of the cryptocurrency’s upside potential has already been achieved – at least until the end of this year.
That is, in general, expectations from the behavior of the first cryptocurrency are positive in any case. Even if Bitcoin does not double or triple in value, it will in any case be able to protect against inflation, which could increase given the willingness of the US government to print new money to support citizens. The stimulus package will be equivalent to $ 1.9 trillion.
The ability to generate higher returns from investing in Bitcoin was a key factor for respondents, with 40 percent seeing crypto as a defense against global inflation and even the depreciation of traditional currencies. This view has gained particular popularity amid the strong release of the US dollar over the past few months. Here is a quote from Nickel Digital CEO Anatoly Krachilov on this matter.
There is also growing optimism about improving the sector’s infrastructure. This will also lead to the fact that more large investors will enter this market.
This means that Tesla’s relatively recent investment in BTC in the equivalent of $ 1.5 billion will not end up large investments in the industry.
The institutional adoption of BTC began in 2020, just since the beginning of last year, the coin has already grown more than five times
Krachilov warned that high volatility – that is, abrupt changes in the exchange rate – of Bitcoin is likely to continue for the coming years. Here is a quote from Decrypt.
Pricing for such assets should never be a straight line. Only professional investors with a long-term view of the underlying technology should have access to this asset class.
It is worth noting that the risks in cryptocurrency investments are really huge, even from the point of view of individual investors with relatively small capital. However, another plus of Bitcoin is that absolutely everyone can now purchase a cryptocurrency. To own BTC, you don’t need to be a financial expert, analyst, or a big fan of technology – nor do you have to have special licenses or permits. Nowadays, many centralized sites offer a convenient exchange of traditional currencies for BTC, so that cryptocurrencies, among other things, are bought directly from a bank card.
Why is it so important? The point is that new individual players will join the market following the influx of new professional investors. They will also make up a significant part of the trading volume. Therefore, in the near future, one should expect a gradual long-term growth of the industry and its entry into the daily life of almost every person.
We believe the survey results should please crypto fans. Apparently, large investors consider blockchain assets to be promising and do not doubt their further growth. They are going to continue to accumulate cryptocurrency with an eye on the long term. Taking this into account, it can be assumed that the current stage of the coin market growth is still far from over.