Yes

>>Approximately 40% of institutional investors had exposure to cryptocurrency in 2023, according to a survey.

Approximately 40% of institutional investors had exposure to cryptocurrency in 2023, according to a survey.

crypthub

1/24/2025, 11:51:16 AM

Global Institutional Investor Interest in Cryptocurrencies on the Rise

The text highlights a significant shift in the global investment landscape, with institutional investors increasingly showing interest in cryptocurrencies. In 2023, approximately 40% of worldwide institutional investors had exposure to crypto assets, marking a substantial increase from 2021's 31%. This trend is evident in various regions, particularly in Hong Kong.

Motivations Behind Institutional Crypto Investments

KPMG's survey reveals compelling reasons behind this growing interest. The majority of respondents (67%) attributed their investment to the maturing crypto market and improved custody infrastructure. Furthermore, the impressive market performance of cryptocurrencies, with Bitcoin and Ethereum leading the way, has captivated investors, with 58% citing it as a primary motivator.

Remarkable Performance of Major Cryptocurrencies

Bitcoin's and Ethereum's performance over the past few years has been extraordinary. Bitcoin achieved a staggering 150% surge in 2023 and continues its upward trend, while Ethereum has seen approximately a 60% increase in 2024. These performances have undoubtedly drawn the attention of institutional investors seeking attractive investment opportunities.

Enhanced Accessibility through SEC Approval

The US Securities and Exchange Commission's (SEC) approval of spot Bitcoin ETFs in January 2023 was a pivotal moment, significantly increasing accessibility for institutional investors. This regulatory move streamlined the process of incorporating cryptocurrencies into institutional portfolios, fostering further interest.

Shifting Investor Sentiment and Growing Coverage

A poll conducted by the Digital Assets Council of Financial Professionals indicates a notable shift in investor sentiment. More financial advisors plan to recommend crypto-related opportunities to their clients, with 35% intending to encourage digital asset investments compared to 21% the previous year. Major sell-side firms have also expanded their coverage of digital assets, reflecting evolving discussions between investor relations professionals and institutional investors.

Hong Kong's Cryptocurrency Boom

Hong Kong has emerged as a hotbed for cryptocurrency investment, driven by regulatory clarity and recent ETF approvals for Bitcoin and Ethereum. The OSL Group, a Hong Kong-listed digital assets company, has witnessed increased investor interest due to this surge in popularity. The city's first batch of crypto-focused ETFs further intensifies competition with similar products in the United States.