Third of professional investors have recently invested in crypto
Professional investors are increasingly focusing on cryptocurrency and digital assets with one third recently investing in cryptoassets for the first time.
Research from digital institutional investment platform Valk found that over half (55 per cent) of these professional investors have raised their allocations.
Furthermore, all the investors questioned in the UK, US, France, Germany, Hong Kong, Singapore, Australia, and Brazil believe the strong performance of the crypto asset class during the pandemic has altered institutional views on the sector.
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Just over half strongly agree that digital assets are a viable asset class and 45 per cent slightly agree with this view.
Around 91 per cent are worried about stretched equity valuations while nine in 10 are worried about fixed income yields.
Meanwhile, 22 per cent have predicted a huge rise in the number of investment-grade bonds paying negative yields in the year ahead.
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“The institutional investment switch to crypto and digital assets is well underway and the research highlights that with a third making their first investment recently,” said Antoine Loth, co-founder of Valk.
“It’s a similar story in the wider DeFi market institutions increasingly dominating transactions with recent data showing they accounted for 60 per cent of all transactions in the sector in the second quarter of 2021.”
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