Many institutional investors predict a major correction in the cryptocurrency market next year, a survey published by Natixis Investment Managers shows. Despite seeing cryptocurrencies as the main competitor for a major correction, institutional investors are getting closer and closer to the asset class.
Institutional Investors See Cryptocurrencies as Top Competitors for a Major Correction
Natixis Investment Managers released the results of a global survey of institutional investors on Wednesday. The company surveyed 500 institutional investors who collectively manage $ 13.2 trillion in assets for public and private pensions, insurance, foundations, endowments and sovereign wealth funds around the world. Nearly 100 institutional investors in the US managing $ 1.3 trillion in assets were included.
Institutional investors were asked which markets will suffer a major correction next year. While “institutions see the potential for corrections in a variety of asset classes and sectors,” the survey findings state:
They believe that the main contender for a major correction next year will be cryptocurrencies.
Natixis detailed that the cryptocurrency tops the list of correction concerns with more than half of the institutions surveyed calling for a correction. Next on the list are interest rate sensitive bonds (45%), stocks (41%) and technology (39%).
Despite predicting a major correction for the crypto market, institutional investors are increasingly closing in on the asset class, Natixis noted, stating:
Even when cryptocurrencies are the main competitor for correction, institutions are beginning to adapt to digital currency.
Natixis added: “Four out of ten consider crypto to be a legitimate investment option, and of the 28% who invest in crypto, 90% say they will either keep (62%) or increase (28%) their allocation.” Meanwhile, 87% of institutional investors expect central banks to eventually regulate cryptocurrencies.
A growing number of institutional investors have shown interest in cryptocurrencies in recent months. In May, global investment bank Goldman Sachs said fear of missing something (FOMO) is driving institutions to use bitcoin. In July, a survey by Nickel Digital Asset Management shows that 82% of institutional investors and wealth managers plan to increase their exposure to cryptocurrencies between now and 2023.
Do you agree with the institutional investors surveyed about a major correction in the crypto market? Let us know in the comment section.
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