A survey by Natixis Investment Managers revealed that many institutional investors expect a significant correction in cryptocurrency markets next year. Institutional investors have begun to embrace crypto, despite not seeing it as the best candidate for major correction.
The top contender for major corrections is Crypto, according to Institutional Investors
Natixis Investment Managers has published Wednesday the results from its global survey of institutional investors. It surveyed 500 institutional investors worldwide who manage $13.2 trillion of assets in public and private pensions and insurance. The study included nearly 100 U.S. institutional investors who managed $1.3 trillion of assets.
Questioning institutional investors about the likelihood of a significant correction in markets next year, they were asked which ones. While “institutions see the potential for corrections in a range of asset classes and sectors,” the survey findings state:
According to them, cryptocurrencies will be the most popular candidate for major corrections in 2019.
Natixis revealed that cryptocurrency is tops on the list, with more than half of all institutions polled calling for correction. Next on the list are interest-rate-sensitive bonds (45%), stocks (41%), and technology (39%).
Natixis observed that institutional investors have begun to embrace crypto assets despite the forecast of a significant correction in the market.
Institutions are becoming more open to crypto, even though it is still the best option for correction.
Natixis added: “Four in ten consider crypto to be a legitimate investment option, and of the 28% who invest in crypto, 90% say they will maintain (62%) or increase (28%) their allocation.” Meanwhile, 87% of institutional investors expect central banks to eventually regulate cryptocurrencies.
Over the last months, a growing number of institutional investors are interested in cryptocurrency. Global investment bank Goldman Sachs stated that institutions are turning to Bitcoin because they fear missing out. Nickel Digital Asset Management’s July survey found that 82% (both institutional and wealth manager) plan to expand their crypto exposure in the next two years.
Are you in agreement with institutional investors who surveyed the market about major corrections? Please leave your comments below.
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