Amid global economic uncertainty, institutional investors prioritize crypto assets for hedging potential. A study by Sygnum Bank reveals growing confidence in the long-term prospects of cryptocurrencies.
Rising Confidence in Long-Term Crypto Potential
A survey by Swiss digital bank Sygnum among more than 400 respondents from 27 countries indicates a focus on the long-term growth of cryptocurrencies. The confidence is driven by expectations of high returns and the emerging 'megatrend' in the crypto sector.
Diversification as a Key Trend
Portfolio diversification remains central as institutional investors seek to hedge against macroeconomic risks, such as recession threats and geopolitical tensions. Bitcoin, due to its scarcity, has regained popularity as 'digital gold'.
Investment Outlook and Challenges
Despite investors' confidence, short-term forecasts remain mixed. Over 50% of investors maintain a neutral stance heading into Q4 2024. Key challenges include asset volatility, security and custody concerns, and a lack of regulatory clarity. Investors are attracted to layer-1 protocols and web3 infrastructure, while crypto-traded products continue to be a preferred choice.
Institutional investors continue to explore opportunities offered by cryptocurrencies, despite existing challenges. Their focus on crypto assets signifies the importance of this segment in the global economy.
