BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

A majority of Institutional Crypto Investors Hold or Plan To Buy Crypto In The Near Future – Study

BlockNews Team by BlockNews Team
October 25, 2022
in BUSINESS, CRYPTO, INVESTING
Reading Time: 4 mins read
1
SHARES
14
VIEWS
Share on XShare in TelegramShare on Reddit

A study by Cointelegraph Research revealed that most institutional investors hold or plan to buy crypto soon. The researchers set out to determine institutional investors’ appetite for digital assets and recorded that up to 43% were already digital asset owners. 

According to the report, Cointelegraph Research surveyed 84 experienced investors from different parts of the world cumulatively managing up to $316 billion worth of assets. With this research and statistics, the investigators established that crypto-related investment attributed to 3.3% of this total, equivalent to about $10.42 billion. 

The study also revealed that some of the sampled investors were neck-deep in crypto, with at least 50% attesting that they were exposed to digital assets in one way or the other. Nevertheless, the respondents’ median percentage of crypto investments stood at approximately 3%.

An analysis of the data revealed that 44% of the respondents rated ‘risk vs. return’ as a crucial factor in their investment decisions. This means that the risk-return ratio was a fundamental consideration every time they invested in cryptocurrencies. Beyond risk-return, other respondents also cited diversification and a strong belief in the technology’s potential. The report stated:

“…my company is convinced that the technology will be important in the future.”

The latter two issues were dimmed ‘relatively less critical compared to the risk versus return consideration. 

Digital Assets that Institutional Investors Consider for Purchase 

The respondents disclosed some of the digital assets they consider for purchase, and as expected, Bitcoin (BTC) ranked highest in terms of popularity among investors.

From the survey, 94% of the sampled institution investors confessed to owning the flagship crypto, Bitcoin (BTC). Ether (ETH) followed closely as 75% of the respondents said they held the second largest crypto by market cap. When asked about security tokens and stablecoins, 31% of institutional investors responded in the affirmative. 

Beyond crypto, the study also revealed other digital assets that attract the interest of institutional investors, including tokenized securities and non-fungible tokens (NFTs). Noteworthy, a significant portion of the respondents disclosed plans to diversify their investments by integrating tokenized securities and NFTs as part of their portfolios. 

The metaverse was another area of interest for another faction of institutional investors, who indicated an inclination towards metaverse projects. This is evidenced by McKinsey data showing that in 2022 alone, metaverse-related projects have already garnered up to $120 billion in investments. 

The McKinsey report has also registered the interest of up to 59% of consumers, noting their excitement to move their daily activities to individual metaverses. It is imperative to note that market pundits speculate that the metaverse sector will attain up to $5 trillion worth of market impact by 2030.

Passive Funds as Gateways for Institutional Investors to Crypto Investments

While most institutional investors opt for direct investments in cryptocurrencies over investment funds and structured products, the same majority also agreed that passive funds like Grayscale’s Bitcoin Trust provide a gateway for their exposure to crypto and other digital assets. 

The study also revealed that institutional investors acquire their shares from sources other than actively and passively managed funds. According to the respondents, the crypto derivatives market is also an area of interest among veteran investors who leverage its high liquidity. 

Ether’s options open interest recently surpassed that of Bitcoin, recording $5 billion and $4.8 billion, respectively. This indicates that professional investors are more drawn to ETH over BTC, with their spot markets attributing 12.5% to 20% of the liquidity offered by the derivatives market for Bitcoin (BTC) and Ether (ETH), delivering 20% to 25%. 

While annual inflows into crypto trusts hit $9.3 billion in 2021, the share prices of these funds took a grave hit in 2022 following the year’s plummeting cryptocurrency prices. Noteworthy, the most affected were the ones managed passively. 

Investors are Worried about Liquidity Risks

Another discovery from the study is that investors are concerned about issues like cybercrime and fraud risks, but the most prominent concern is liquidity risk. Survey data recorded that 51% of respondents marked this factor as the most problematic, posing a formidable hurdle to crypto adoption. In this regard, it follows that the degree of volatility expressed by an asset is indirectly proportional to the ‘interest to hold’ among conservative investors. 

For instance, in the spring of 2021, electric carmaker Tesla sold a portion of its BTC holdings to demonstrate the asset’s liquidity. The move proved successful as it convinced Tesla shareholders and the entire equity market that holding digital assets like BTC might be advantageous. 

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: BusinesscryptoInstitutionstudy
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

NEAR Foundation Unveils Grand 2026 Flagship in San Francisco: Where AI Meets Decentralization
CRYPTO

NEAR Foundation Unveils Grand 2026 Flagship in San Francisco: Where AI Meets Decentralization

September 4, 2025
BITCOIN

Here’s Why Bitcoin’s Struggles Could Trigger the Next Big Market Shift

September 4, 2025
Here is Why Dogecoin’s Treasury Move Could Be the Catalyst for $1
CRYPTO

Here is Why Dogecoin’s Treasury Move Could Be the Catalyst for $1

September 4, 2025
Cardano Sentiment Nosedives to 5-Month Low, But Whales See Opportunity
CARDANO

Cardano Sentiment Nosedives to 5-Month Low, But Whales See Opportunity

September 4, 2025
Ethereum Whales Fuel 200% Rally as Institutions Deepen Their Bets: Here is The Next Move You Need to Watch
CRYPTO

Ethereum Whales Fuel 200% Rally as Institutions Deepen Their Bets: Here is The Next Move You Need to Watch

September 4, 2025
Bitcoin Balances on the Edge as Whales Retreat and Fed Decision Looms: What You Need to Know
BITCOIN

Bitcoin Balances on the Edge as Whales Retreat and Fed Decision Looms: What You Need to Know

September 4, 2025
Load More

Related News

NEAR Foundation Unveils Grand 2026 Flagship in San Francisco: Where AI Meets Decentralization

NEAR Foundation Unveils Grand 2026 Flagship in San Francisco: Where AI Meets Decentralization

September 4, 2025

Here’s Why Bitcoin’s Struggles Could Trigger the Next Big Market Shift

September 4, 2025
Here is Why Dogecoin’s Treasury Move Could Be the Catalyst for $1

Here is Why Dogecoin’s Treasury Move Could Be the Catalyst for $1

September 4, 2025
Cardano Sentiment Nosedives to 5-Month Low, But Whales See Opportunity

Cardano Sentiment Nosedives to 5-Month Low, But Whales See Opportunity

September 4, 2025
Ethereum Whales Fuel 200% Rally as Institutions Deepen Their Bets: Here is The Next Move You Need to Watch

Ethereum Whales Fuel 200% Rally as Institutions Deepen Their Bets: Here is The Next Move You Need to Watch

September 4, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews