A JPMorgan survey shows that one in five institutional investors who do not trade in cryptocurrencies believe that companies are likely to do so in the future.
A survey of more than 3,400 investors representing 1,500 organizations showed that 11% of respondents work for companies that trade or invest in cryptocurrencies, while 89% do not.
However, the promise is that twice as many institutions invest in cryptocurrencies than those that have fallen in the past, which indicates that institutional money may continue to flow into the markets in the short term.
Among respondents from companies that do not trade or invest in cryptocurrencies, 22% said that they believe that their companies are more likely to invest in cryptocurrencies in the future.
While some analysts claim that sustainable institutional buying will now support the $ 50,000 bitcoin price, a large number of institutional investors still do not believe in the cryptocurrency.
When asked what they think about the cryptocurrency, 14% answered that this is “probably the square rat position” and what should be avoided, while 21% believe that the cryptocurrency is just a temporary fad. Only 7% of investors believe it will “become an important resource”.
The survey shows that most organizations have security issues, with 98% of respondents asking that they believe fraud in the cryptocurrency world is “something” or “widespread.”
This seems to be a major obstacle for institutional investors at the moment, and Damien Vanderwelt, co-president of Galaxy Digital, told Bloomberg last month:
“When we think about the conversations we have with companies and institutional clients, as well as with which part of these groups they are considering investing in this sector, the number one concern is security, and the assets they buy will be safe, affordable and reliable.”
However, these concerns do not bother major players such as Tesla and MicroStrategy, as both sides are investing billions in cryptocurrencies in 2021. MicroStrategy recently increased its BTC holdings by 27% in February, increasing the amount of bitcoins in Treasury reserves. To 90,531 BTC.