Canadian Institutional Investors Are Increasingly Infatuated with Crypto

Liputan6.com, Jakarta – According to a recent report conducted by public accounting firm KPMG, institutional investors in Canada significantly increased their cryptocurrency exposure last year compared to previous increases.

Reporting from CoinmarketcapSaturday (27/4/2024), in the survey, which received 65 responses from institutional investors and financial services organizations, found that almost 40% of participants reported having direct or indirect exposure to crypto assets in 2023, up from 31% compared to with a KPMG study in 2021.

Of the respondents, 31 people were identified as institutional investors who managed assets of more than USD 500 million or the equivalent of IDR 8 trillion (assuming an exchange rate of IDR 16,191 per US dollar), while the remaining 34 were financial services organizations.

The survey revealed one-third of institutional investors have allocated 10% or more of their portfolios to crypto assets, showing an increase from one-fifth two years ago.

The survey highlights a maturing market and improving storage infrastructure as key factors driving institutional investors to invest in crypto assets.

Additionally, financial firms expanding their offerings cite increased client demand for crypto asset services as a significant factor.

The report also revealed half of institutional investors surveyed had exposure to crypto assets through Canadian ETFs, closed-end trusts, or other regulated products.

Additionally, 58% of participants have exposure through stock markets, such as Galaxy Digital on the Toronto Stock Exchange, which is up from 36% in 2021.

Exposure through derivatives markets also saw a significant increase, with 42% of institutional investors receiving exposure compared to 14% in 2021. The only decline occurred in venture capital firms or hedge funds, down to 25% from the previous year's 29%.

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