Institutional investors to increase allocations to crypto assets says new survey

New research amongst institutional investors who collectively help manage USD78.4 billion of assets, reveals thatover the next five years26 per centbelievepension funds, insurers, family offices and sovereign wealth funds will ‘dramatically’ increase their level of investment incryptocurrenciessuch as bitcoin and crypto assetsin general.

A further 64 per centanticipateaslight rise.The corresponding figure for hedge funds is 32 per cent and48 per cent respectively.

The findings are fromcrypto asset issuance company Evertas, which  focuses  on covering institutional holders of cryptoassets including exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals.
When asked why theybelieve institutional investorswillincrease their exposure to cryptocurrencies andcrypto assets, 84 per centof the survey respondents said it was because they expect the regulatory infrastructure for the market to improve, and this is followed by80 per cent who say it is because the crypto market will become much bigger, providing greater liquidity.Threeinfour (76 per cent)say it is because they expect moremainstream fund managers and financial services companies to enter this market, and there will be more funds and investment vehicles inthis areato choose from.
However,Evertas’ findings reveal that institutional investors still have some substantialconcerns about investing incrypto assets. Some 56 per cent said they are ‘very concerned’ about the lack of insurance cover for crypto assets, while 54 per cent were ‘very concerned’about the working practicesand compliance proceduresof companies working in the sector who supply services to institutional investors. Other concerns include the quality of custodial services in thismarket, the availability and quality of trading desks,and reporting facilities.
J Gdanski, CEO and Founder of Evertas, says: “Our research shows that institutional investors areenthusiastic aboutincreasingtheir exposure tocryptocurrencies andcrypto assetsin general, but there are clearly many issues regarding the infrastructure that supports these markets that still concerns them.These clearly need to be addressedif thefull potential of investment from institutional investorsincrypto assetsis to be realised.”
Raymond Zenkich, President and COO, Evertas, says: “A lack of adequate insurance for thecrypto assetsmarket is clearly top of the list of concerns for many institutional investors, which is perhaps not surprising wheninsurers are only providing capacity of around USD2 billion for a market that is worth betweenUSD250 billion andUSD300 million. We are working closely with the insurance community to address this issue.”
Earlier this year,Evertascompleted a Seed Stage funding round and raised USD2.8 million. Thefunding round was led by Morgan Creek, who were joined by Plug n Play, Kailash Ventures, RenGen, Vy Capital and Wavemaker Genesis. Mark Yusko,Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management & Managing Partner of Morgan Creek Digital Assets,joinedEvertas’ Board of Directors.
It alsoreceived its licence from the Bermuda Monetary Authority to start operating from the jurisdiction. It operates as a ‘Class 3A’ insurer.  
Founded in 2017, Evertas has a world-leading team led by an experienced group of executives including, a blockchain team leader at Bank of New York, and a blockchain industry insurance expert. The founders have over 40 years of combined experience in the insurance sector, and more than ten in the crypto and blockchain markets.