TL;DR Breakdown:
- Five percent of finance executives are planning to allocate to Bitcoin this year.
- However, most of them chose to stay away from the cryptocurrency due to high volatility.
The leading cryptocurrency, Bitcoin (BTC), is increasingly becoming popular among corporations. This probably follows the recent Tesla’s move of adding $1.5 billion Bitcoin (eight percent of their cash reserve) to their balance sheet. A recent survey confirmed the growing popularity of cryptocurrency among companies; however, only a few finance executives are ready to allocate their cash reserve to Bitcoin.
Gartner, Inc., a leading research and advisory company, conducted the poll in February, which was responded to by 77 finance executives (including 50 CFOs).
5% of finance executives will allocate to Bitcoin in 2021
According to the survey report, about 16 percent of the finance executives that responded to the poll indicated an interest in holding Bitcoin as a reserve asset. Precisely, about five percent of the entire respondents are planning to hold the cryptocurrency this year as part of their organization’s financial strategy. One percent of them want to join the bandwagon sometime in 2022 and 2023. Also, nine percent intend to add Bitcoin to their balance sheet by 2024 or beyond.
Sixteen percent is a small number compared to the 84 percent of the finance executives who are not ready to invest in cryptocurrency. Most of these respondents blamed Bitcoin’s volatility as the major reason they don’t plan to allocate to it. “It would be extremely difficult to mitigate the kind of price swings seen in the cryptocurrency in the last five years,” the chief of research at Gartner, Alexander Bant, commented.
Some of them chose to stay away from Bitcoin due to regulatory concerns, cyber risks, slow adoption as a means of payment, and so on.
Financial advisors will allocate to crypto
Interest in cryptocurrency is also growing amongst financial advisors. Recently, a survey involving 1,000 financial advisors in the US showed that two percent of them would allocate their clients’ funds to Bitcoin in 2021. Nearly 50 percent did so last year, as Cryptopolitan reported.
