TL; DR breakdown
- Institutional investors predict a market correction next year
- The survey was conducted among 500 investors.
- Institutional investors are moving towards cryptocurrencies
The crypto sector has continued to enjoy better and positive moves over the past few months. Although the market is currently struggling, the assets are still performing well overall. With some analysts and experts predicting that the cryptocurrency market will see a turn for the better next year, institutional investors have another view of the market in mind. According to these investors, they feel the market needs to make a massive correction, and it could happen next year.
The survey was conducted among 500 investors.
According to the survey conducted by Natixis Investment, institutional investors are still entering the market. This is despite the belief that it is due to a much-needed correction. The firm that conducted the survey released the results where about 500 institutional investors gave their opinion on the market and other things. Investors spanned various sectors of the financial economy, including insurance, grants, and a few others.
Following the report, the institutional investors surveyed boast about $ 13.3 trillion in assets under management. Outside the survey listed ParticipantsOnly 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, and most of them answered affirmatively about Bitcoin and digital assets.
Institutional investors are moving towards cryptocurrencies
In its report, Natixis Investment mentioned that more than half of investors are looking for digital assets to undergo correction next year. Aside from digital assets, traders think bonds, which got 45% of the vote, are another candidate for correction. Others in the selection include stocks that got 41% and technology with about 39%.
Although institutional investors see cryptocurrencies as the main candidate for a correction next year, most of them are hesitant to invest in the financial instrument. The report mentioned that more than four in ten people checked yes when asked about their preference for cryptocurrencies over other financial instruments. The report also mentioned that in about 90% of merchants already in the crypto market, 62% plan to buy more digital assets, while 28% will leave their portfolio as is.
In terms of regulation, 87% of institutional investors believe that central banks could move forward. Institutional investors have continued to show massive interest in the cryptocurrency sector, entering the sector's diverse industry. A Goldman Sachs report from July claimed that most institutional investors are entering the cryptocurrency market out of fear of losing profits.
