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Institutional investors are optimistic that the U.S. Securities and Exchange Commission (SEC) has more powers to regulate the crypto market, according to a recent survey. They believe that if the SEC is granted additional powers, the price of cryptocurrencies will be positively affected.
Institutional Investors’ Views on Cryptocurrencies
Regulated European digital asset hedge fund manager Nickel Digital Asset Management recently released a report on institutional adoption of crypto assets.
The report includes surveys and interviews with 50 wealth managers and 50 institutional investors in the US, UK, Germany, France and the United Arab Emirates (UAE). Together, they manage about $108.4 billion.
The report explains that security concerns are the number one reason institutional investors are skeptical about investing in crypto assets. According to the survey results, 79% of respondents cited asset custody as a key consideration for investing in the crypto space. The report further states:
This was followed by price volatility at 67%, market cap at 56% and the regulatory environment at 49%.
“Another 12 percent cite the carbon footprint of Bitcoin and other cryptocurrencies as their top three reasons for not investing,” the report added.
Respondents were also asked about crypto regulation. SEC Chairman Gary Gensler called on Congress to give the SEC more powers to regulate cryptocurrency exchanges and activities such as trading and lending.
Most respondents are optimistic about the prospect of the SEC gaining more powers to regulate crypto assets. Of those, 76 percent expect approval this year.
The report details:
If the SEC is granted these additional powers, 73% of institutional investors and wealth managers believe it will have a positive impact on the prices of crypto and digital assets, and 32% believe it will have a very positive impact.
Do you think the SEC should have more powers to regulate the crypto space? Let us know in the comments section below.
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