Survey Reveals: 40% of Institutional Investors Had Crypto Exposure in 2023

Institutional Investors’ Growing Interest in Cryptocurrencies

Nearly 40% of institutional investors had exposure to crypto assets in 2023, a notable rise from the 31% recorded in 2021. A recent survey conducted by KPMG in Canada and the Canadian Association of Alternative Assets & Strategies revealed a significant increase in institutional investors’ interest in cryptocurrencies.

Allocation to Crypto Assets

A third of respondents reported having at least 10% of their portfolio allocated to crypto assets, compared to only a fifth of respondents two years ago.

Reasons Behind the Interest

• 67% of respondents cited the maturing market and custody infrastructure as a significant factor, a significant increase from the 14% recorded in 2021.
• 58% of respondents mentioned the strong market performance of cryptocurrencies as a motivating factor for their investments.

Market Performance of Cryptocurrencies

The market performance of cryptocurrencies, particularly Bitcoin and Ethereum, has been remarkable in recent years. Bitcoin experienced a 150% increase in 2023 and is up nearly 60% year-to-date. Similarly, Ethereum has risen by approximately 60% in 2024.

Impact of SEC Approval on Institutional Investors

The approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in January of this year has played a significant role in boosting institutional investors’ access to the crypto asset class.

Financial Advisers’ Recommendations

A poll by the Digital Assets Council of Financial Professionals indicates a sharp rise in the number of financial advisers planning to recommend crypto-related opportunities to their clients.

Increased Interest in Hong Kong

The increased interest in cryptocurrencies has also been observed in Hong Kong, where regulatory clarity and recent approvals of Bitcoin and Ethereum spot ETFs have contributed to a surge in institutional and retail investor focus.