A new survey by Laser Digital suggests that institutional investors are ready to invest in cryptocurrencies as part of their portfolio strategy. The survey shows an overwhelming openness to the technology. However, it also reveals hurdles to crypto adoption. Some investors are not willing to make the leap without the support of big backers in traditional finance.
According to the survey, 96% of respondents view digital assets as an opportunity to diversify their investments, alongside traditional asset classes like fixed income, cash, equities, and commodities. And 45% said their holdings of digital assets will be between 5% and 10% over the next three years. Only 0.5% say they will not figure at all.
Institutional Investors Confident in Crypto
However, around 90% said that it is important to have the backing of a large traditional financial (TradFi) institution for any digital asset fund or investment vehicle before they would consider handing over their money.
The findings demonstrate how reliant crypto investment is on big financial behemoths like banks, pension funds, and insurance. As well as a reluctance on the part of institutional investors to acquire similar products in decentralized finance (DeFi).
Learn the difference between TradFi and DeFi with this simple, easy guide: What is TradFi: Meaning and Examples
Of course, the liquidity in DeFi remains much smaller than in traditional finance. As of May 2023, the Total Value Locked (TVL)—the total amount of assets locked in decentralized finance protocols—was $79.16 billion. A 4.3% decrease from the previous month, accordi
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Author: Josh Adams
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