TL; DR Breakdown
- Institutional investors predict market correction next year
- The survey was carried out among 500 investors
- Institutional investors are moving to crypto
The crypto sector has continued to enjoy better and positive movements throughout the last few months. Although the market is currently struggling, the assets are still doing well overall. With some analysts and experts predicting that the crypto market will see a turn for the best next year, institutional investors have another view of the market in mind. According to these investors, they feel the market is due for a massive correction, and it might happen next year.
The survey was carried out among 500 investors
According to the survey which was carried out by Natixis Investment, institutional investors are still entering the market. This is despite the fact they feel it is due for a much-needed correction. The firm that held the survey released the results where about 500 institutional investors gave their opinion on the market and other things. The investors spanned across various sectors of the financial economy including insurance, endowment, and some others.
Going by the report, the surveyed institutional investors boasts of about $13.3 trillion in asset under management. Out of the listed survey participants, only 100 were from the United States with assets under management of $1.3 trillion. A part of the survey question highlighted which financial instrument will undergo correction next year, with most of them answering in the affirmative about Bitcoin and digital assets.
Institutional investors are moving to crypto
In its report, Natixis investment mentioned that more than half of the investors are looking at digital assets to undergo correction by next year. Asides from digital assets the traders think bonds, which polled 45% of the votes are another candidate for correction. Others in the pick include stocks which polled 41% and technology with about 39%.
Although the institutional investors see crypto as the headline candidate for a correction next year, most of them are undeterred from investing in the financial instrument. The report mentioned that more than four out of ten people ticked yes when asked about their preference for crypto over other financial instruments. The report also mentioned that in about 90% of the traders already in the crypto market, 62% plans to buy more digital assets while 28% will leave their portfolio as it is.
In terms of regulation, 87% of institutional investors believe that central banks might make headway. Institutional investors have continued to show massive interest in the crypto sector, entering the diverse industry in the sector. A Goldman Sachs report as far back as July claimed that most institutional investors are entering the crypto market because of the fear of missing out on profits.