Institutional investors predict major crypto market correction next year

    15 Dec 2021

    A significant share of institutional investors is expecting a major correction in the crypto market in 2022, a survey published by Natixis Investment Managers said. Despite this, institutional investors are increasingly warming up to crypto-assets.

    Natixis Investment Managers published the results of a global institutional investor survey. The company polled 500 institutional investors who collectively manage $13.2 trillion in public and private pensions, insurance, foundations, endowments, and sovereign wealth funds worldwide. Nearly 100 institutional investors in the US who manage $1.3 trillion in assets were included.

    A part of the survey question highlighted which financial instrument will undergo correction next year, with most of them answering in the affirmative about Bitcoin and digital assets.

    In its report, Natixis investment mentioned that more than half of the investors are looking at digital assets to undergo correction by next year. Asides from digital assets, the traders, think bonds, which polled 45% of the votes, are another candidate for correction. Others in the pick include stocks which polled 41%, and technology, with about 39%.

    Although the institutional investors see crypto as the headline candidate for a correction next year, most are undeterred from investing in the financial instrument. The report mentioned that more than four out of ten people ticked yes when asked about their preference for crypto over other financial instruments.

    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.”

    In terms of regulation, 87% of institutional investors believe that central banks might make headway.

    Institutional investors have continued to show massive interest in the crypto sector, entering the diverse industry in the sector.

    In May, global investment bank Goldman Sachs said that fear of missing out (FOMO) is driving institutions to Bitcoin. In July, a survey by Nickel Digital Asset Management showed that 82% of institutional investors and wealth managers plan to increase their crypto exposure between now and 2023.

    Leave a Reply

    Your email address will not be published. Required fields are marked *