Institutional investors are optimistic about the U.S. Securities and Exchange Commission (SEC) having more power to regulate the crypto market, a recent survey shows. They believe that if the SEC is granted extra powers, the prices of cryptocurrencies will be positively impacted.
What Institutional Investors Think About Crypto
Nickel Digital Asset Management, a regulated European digital asset hedge fund manager, recently released a report on the institutional adoption of crypto assets.
The report includes a survey and interviews with 50 wealth managers and 50 institutional investors across the U.S., the U.K., Germany, France, and the United Arab Emirates (UAE). They collectively manage around $108.4 billion.
The report explains that security concerns top the list of why institutional investors are skeptical about investing in crypto assets. According to the survey results, 79% of all respondents see asset custody as the key consideration for investing in the crypto space. The report further notes:
This was followed by 67% who said price volatility, 56% who cited market cap, and 49% who said the regulatory environment.
“Further 12% included the carbon footprint from Bitcoin and other cryptocurrencies in their top three reasons for not investing,” the report adds.
Respondents were also asked about crypto regulation. SEC Chairman Gary Gensler has called on Congress to provide the SEC with more power to regulate crypto exchanges and activities such as trading and lending.
The majority of respondents are optimistic about the prospect of the SEC being empowered with more authority to regulate crypto assets. Among them, 76% expect this will be granted this year.
The report detailed:
If the SEC is granted these extra powers, 73% of institutional investors and wealth managers believe this will have a positive impact on the price of crypto and digital assets and 32% believe it will have a very positive effect.
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