In a poll conducted by Binance Research, we learn that 88% of institutional investors surveyed say they are confident about the cryptocurrency ecosystem for the next decade. What are the other highlights of this study?
Binance Research Presents its Institutional Investor Survey
According to a survey by Binance Research of 200 institutional investors, 88% of them say they are confident for the cryptocurrency sector for the coming decade. Looking ahead to the next 12 months, that same metric is more nuanced, though it comes out optimistic at 63.5%.
Among the players surveyed, 47.1% have maintained their allocation over the past year, and 35.6% have even increased it. Looking at the next 12 months, half expect to increase said allocation while only 4.3% of respondents could reduce it.
The illustration below shows the quantity of amounts invested by these 200 institutional investors. For example, we can see that just over half hold one for less than $25 million. while nearly 23% manage more than $100 million :
Figure 1 — Amounts of cryptocurrencies invested by institutional investors surveyed
These investors have more than 5 years of experience in crypto investment for 48.1% of them and we can also note that it is less than a year for only 2.4%.
Moreover, there are many reasons to take an interest in the ecosystem :
- Expected earnings: 42.8%;
- Willingness to be exposed to technology: 37.5%
- Portfolio diversification: 11.5%;
- The remaining 8.2% are categorized by other reasons.
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A variety of exhibition sectors
Although the whole cryptocurrency market remains generally correlated, the sectors are varied and in this regard, we can see that not all are in the same boat. And for good reason, respondents will greatly prefer blockchain infrastructures, layers 1, layers 2 and decentralized finance (DeFi) to a lesser extent, while everything related to non-fungible and metaverse tokens is neglected:
Figure 2 — Cryptocurrency investment sectors
Among niche sectors, these same investors attach great importance innovations related to wallets for half of thembut also zero-knowledge proof technologies for 27%, and 21% for crypto integrations with artificial intelligence.
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Sources of distrust in investments
Another interesting point to explore is the factors that institutional investors are keeping a cautious eye on in crypto. While market volatility is a point that seems to come up often, we find that it only worries 2.8% of people surveyed by Binance Research. Without surprise, regulatory risk tops the list for 29.7% of respondents :
Figure 3 — Sources of institutional investor mistrust in crypto
Additionally, counterparty risk is also an important consideration for 21.6% of investors, and 15.7% worry about the safekeeping of their digital assets. An interesting parallel can be drawn with the way these assets are stored, namely at 58.2% on centralized exchanges :
Figure 4 — Ways of storing cryptocurrencies among institutional investors surveyed
On the other hand, we can notice that less than 15% of the respondents keep their assets themselves by means of cold wallets.
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Source: Binance Research
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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