A recent survey by JP Morgan found that 22% of respondents said their respective organizations were likely to trade or invest in cryptocurrencies. This number (22%) is double the percentage of respondents (11%) who said yes when asked if their respective organizations were already trading or invested in cryptocurrencies.
The institutional embrace of cryptos
According to a report, the results of this latest survey present new evidence to support the claim that more mainstream institutions are accepting crypto assets. Large companies like Tesla have announced their cryptocurrency holdings since the beginning of 2021. Similarly, large hedge funds like Blackrock have signaled their intention to get exposure to crypto assets like Bitcoin (BTC).
Still, as the same report shows, shows an overwhelming majority (78%) of investors whose institutions have not yet accepted cryptos; There were no plans to invest in or trade in cryptocurrencies. In addition, almost all respondents (98%) believe that fraud is “something” or “very common” in the crypto world.
Cryptos are here to stay
Despite this perception or reluctance to invest in cryptocurrencies, around 58% of respondents still believe that this new asset class will “stay here”. On the other hand, around 7% of investors claim that cryptocurrencies are “becoming one of the most important assets”.
Since the beginning of the fourth quarter of 2020, when Square Inc. announced its BTC holdings, more publicly traded companies have disclosed the values of their cryptocurrency holdings. This fact is also supported by the latest data from bitcointreasuries.org, a website that tracks public and private companies using BTC. According to the website, more than 1.36 million bitcoins, or 6.49% of the circulating supply of crypto-assets, are currently in the hands of large corporations and hedge funds.
Despite this obvious acceptance of digital assets by mainstream organizations, 21% of the investors surveyed still see cryptocurrencies as a “passing fad”. In addition, around 14% of respondents agree with the characterization of crypto assets as “rat position in the square”.
Do you agree that crypto assets are becoming one of the most important assets? Let us know what you think in the comments section below.
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