Institutional investors are optimistic that the United States Securities and Exchange Commission (SEC) has more power to regulate the crypto market, according to a recent survey. They believe that if the SEC is given additional powers, the prices of cryptocurrencies will be positively impacted.
What Institutional Investors Think About Crypto
Nickel Digital Asset Management, a regulated European hedge fund manager of digital assets, recently published a report on the institutional adoption of crypto assets.
The report includes a survey and interviews with 50 wealth managers and 50 institutional investors in the United States, United Kingdom, Germany, France and United Arab Emirates (UAE). They collectively manage approximately $ 108.4 billion.
The report explains that security concerns are at the top of the list of reasons institutional investors are skeptical about investing in crypto assets. According to the survey results, 79% of all respondents view asset custody as the key factor in investing in the crypto space. The report further notes:
This is followed by 67% who mentioned price volatility, 56% who mentioned market capitalization and 49% who mentioned the regulatory environment.
“Additionally, 12% included the carbon footprint of Bitcoin and other cryptocurrencies in their top three reasons not to invest,” the report adds.
Respondents were also asked about the regulation of crypto. SEC Chairman Gary Gensler called on Congress to give the SEC more power to regulate crypto exchanges and activities such as trading and lending.
The majority of those polled are optimistic that the SEC will be given more powers to regulate crypto assets. Of these, 76% expect it to be granted this year.
The report detailed:
If the SEC is granted these additional powers, 73% of institutional investors and wealth managers believe it will have a positive impact on the price of crypto and digital assets and 32% believe it will have a very positive effect.
Do you think the SEC should have more power to regulate the crypto space? Let us know in the comments section below.
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