A recent survey revealed that institutional investors are optimistic that the U.S. Securities and Exchange Commission (SEC) has more power to regulate the crypto market. They believe that if the SEC is granted additional powers, the price of cryptocurrencies will be positively affected.
How institutional investors view cryptocurrencies
Nickel Digital Asset Management, a regulated European digital asset hedge fund manager, recently released a report on the adoption of crypto assets by institutions.
The report includes surveys and interviews with 50 wealth management institutions and 50 institutional investors from the United States, the United Kingdom, Germany, France, and the United Arab Emirates (UAE). In total, they manage approximately US$108.4 billion.
The report explained that security issues are the number one reason institutional investors are skeptical of investing in crypto assets. According to the survey results, 79% of respondents believe that asset custody is a key consideration for investing in the crypto sector. The report further stated:
This is followed by 67% of people expressing price fluctuations, 56% of people expressing market value, and 49% of people expressing regulatory environment.
The report added: “Another 12% cited the carbon footprint of Bitcoin and other cryptocurrencies as the top three reasons for not investing.”
Respondents were also asked about encryption regulation. SEC Chairman Gary Gensler called on Congress to give the SEC greater powers to regulate cryptocurrency exchanges and activities such as trading and lending.
Most interviewees are optimistic about the prospect of the SEC gaining more power to regulate crypto assets. Among them, 76% are expected to be approved this year.
If the SEC obtains these additional powers, 73% of institutional investors and wealth management institutions believe it will have a positive impact on the price of encryption and digital assets, and 32% believe it will have a very positive impact.
Do you think the SEC should have more power to regulate the crypto space? Please let us know in the comments section below.
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