UK crypto fund Nickel Digital Asset Management has published a survey of 100 global asset managers and institutional investors to reveal investors’ biggest concerns about cryptocurrency.
The survey includes respondents from the United States, France, Germany, the United Arab Emirates and the United Kingdom, which together have $275 billion in assets.
The survey was conducted online from May to June 2021 and revealed that institutional investors are declining in confidence in cryptocurrency security: 76% of respondents said concerns about the security of custody services are a factor preventing them from investing in cryptocurrency.
Respondents also identified the regulatory environment as a major obstacle. Other significant issues included a lack of transparency and volatility, as well as an alleged lack of reputable fund managers offering investments in cryptocurrencies.
Nickel Digital co-founder and CEO, Anatoly Krachilov, said institutional concerns about cryptocurrency and security are emerging despite “very strong progress in this area.” Crypto service providers are increasingly embracing complex cryptographic solutions such as distributed keys and multi-party computing storage, while traditional financial institutions are also turning to such services, Karachilov said.
Related: BNY Mellon Joins State Street to Launch New Cryptocurrency Exchange
“We are now seeing Fidelity, BNY Mellon and State Street enter the market, further strengthening the market infrastructure. All of this increases confidence in the sector and leads to an increased contribution to this fast-growing asset class.
A new investigation comes shortly after the Australian Stock Exchange issued a security alert about centralized cryptocurrency exchanges, alerting investors to cybersecurity risks in the form of hacker theft.