Many institutional investors are predicting a major correction in the cryptocurrency market next year, a survey published by Natixis Investment Managers shows. Despite seeing crypto as the top contender for a major correction, institutional investors are increasingly warming up to the asset class.
Institutional investors see crypto as the best candidate for a major correction
Natixis Investment Managers published the results of a global survey of institutional investors on Wednesday. The company surveyed 500 institutional investors who collectively manage $ 13.2 trillion in assets for public and private pensions, insurance, foundations, endowments and sovereign wealth funds around the world. Almost 100 institutional investors in the United States who manage $ 1.3 trillion in assets were included.
Institutional investors were asked about which markets will see a major correction next year. While “institutions see the potential for corrections in a range of asset classes and sectors,” the survey findings state:
They believe the main contender for a major correction next year will be cryptocurrencies.
Natixis detailed that cryptocurrency tops the list of correction concerns with more than half of institutions surveyed calling for a correction. Next on the list are interest-rate-sensitive bonds (45%), stocks (41%), and technology (39%).
Despite the forecast of a major correction for the crypto market, institutional investors are moving closer and closer to the asset class, Natixis noted, saying:
Even as crypto is the top contender for correction, institutions are beginning to warm to digital currency.
Natixis added, “Four in ten see crypto as a legitimate investment option, and of the 28% who invest in crypto, 90% say they will either maintain (62%) or increase (28%) their allocation. Meanwhile, 87% of institutional investors expect central banks to eventually regulate cryptocurrencies.
A growing number of institutional investors have shown interest in cryptocurrencies over the past months. In May, global investment bank Goldman Sachs said that fear of missing out (FOMO) is driving institutions to bitcoin. In July, a survey by Nickel Digital Asset Management shows that 82% of institutional investors and wealth managers are planning to increase their crypto exposure between now and 2023.
