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Institutional Investors Are Buying Through The Crypto Winter: Survey

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A survey of institutional investors suggests that their cryptocurrency allocations have risen over the past year despite the industry going through a prolonged crypto winter.

A Coinbase-sponsored survey published on Nov. 22 and conducted between Sept. 21 and Oct. 27 found that 62% of institutional investors who invested in cryptocurrency had increased their allocations in the past 12 months.

By comparison, only 12% had decreased their exposure to cryptocurrencies, indicating that most institutional investors may be bullish on digital assets in the long term despite falling prices, according to the survey.

More than half of the investors surveyed said they were currently, or planning to, use a buy-and-hold approach to cryptocurrencies, with the belief that cryptocurrency prices will remain stable and range-bound over the next 12 years. months.

Furthermore, 58% of respondents said they expect to increase their portfolio allocation to cryptocurrencies over the next three years, with almost half “strongly agree” that cryptocurrency valuations will increase over the long term.

As has been widely reported previously, regulatory uncertainty was once again the factor most investors were concerned about when weighing whether to invest in crypto, particularly among those planning to invest in the next 12 months, where 64% noted concerns.

The representative sample for Coinbase’s survey consisted of 140 United States-based institutional investors, who collectively have assets under management totaling around $2.6 trillion. The survey was conducted by the Custom Research Lab of Institutional Investor, a business-to-business publisher.

Related: $138 Billion Investment Manager Man Group to Launch Crypto Hedge Fund: Report

In October, a survey of institutional investors by Fidelity Investments subsidiary Fidelity Digital Assets, published Oct. 27, had similar findings, and in an interview with Cointelegraph, Fidelity’s head of research Chris Kuiper noted:

“They’re agnostic about some of this crazy volatility and price because they’re looking at it from a very long-term perspective. They are looking at the next few years, five years, a decade or more.”

It’s worth noting that both surveys were conducted before the FTX crash, which CoinShares says has led to a record rise in short investment products, while total assets under management by crypto institutional investors are now at $22 billion, the lowest. in two years.

CoinShares’ James Butterfill on Nov. 21 said that the increase in shorting is likely “a direct result of the ongoing fallout from the FTX collapse.”