Recent surveys show that institutional investors believe the U.S. Securities and Exchange Commission will have more authority to regulate the cryptocurrency market. According to them, if the SEC has more power, prices for cryptocurrencies could be affected.
How institutional investors view crypto
Nickel Digital Asset Management is a European regulated digital asset manager that recently published a report about institutional adoption of cryptocurrency assets.
This report contains interviews and surveys with 50 wealth managers from the U.S. and 50 institutional investors. Their combined assets are approximately $108.4 trillion.
Security concerns are the main reason institutional investors don’t want to invest in crypto assets, according to the report. The survey found that 79% of respondents consider asset custody to be the most important consideration when investing in crypto assets. According to the report,
The 67% that said volatility were followed by 56% who mentioned market cap and 49% who stated 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.
Also, respondents were asked questions about cryptocurrency regulation. Gary Gensler (SEC Chairman) has asked Congress for more powers to the SEC to regulate crypto-exchanges, lending and trading.
A majority of respondents believe that the SEC will be empowered to oversee crypto assets. 76% believe this will occur this year.
This report details:
According to 73% of institutional investors, wealth managers and the SEC, this could have an impact on crypto assets’ prices. 32% think it would have a significant positive impact.
Is the SEC given more authority to manage the crypto industry? Comment below to let us know your thoughts.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerInformational: It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.