The National Crowdfunding & Fintech Association of Canada recently released a report that sheds light on the current state of professional investors’ interest in cryptocurrencies. The report reveals that professional investors, such as hedge funds and asset managers, have shown limited interest in cryptocurrencies, despite the growing popularity of digital assets among retail investors.
The report suggests that one of the main reasons for this limited interest is the lack of regulatory clarity surrounding cryptocurrencies. Many professional investors are hesitant to invest in an asset class that is not yet fully regulated, as they fear potential legal and reputational risks. Additionally, the report notes that many professional investors are still skeptical about the long-term viability of cryptocurrencies as a legitimate asset class.
However, the report also highlights a potential solution to this issue: exchange-traded products (ETPs). ETPs are investment products that track the performance of an underlying asset or index, such as a cryptocurrency. ETPs are traded on regulated exchanges and are subject to the same regulatory oversight as other investment products, which may make them more attractive to professional investors.
The report notes that there has been a recent surge in the number of cryptocurrency ETPs being launched, particularly in Europe. In fact, Europe now has more cryptocurrency ETPs than the United States. This trend suggests that there is growing demand for regulated investment products that provide exposure to cryptocurrencies.
The report also suggests that the potential for increased adoption of cryptocurrency ETPs is significant. As more ETPs are launched and gain regulatory approval, professional investors may become more comfortable investing in cryptocurrencies. Additionally, the report notes that the growing interest in cryptocurrencies among retail investors may also drive demand for ETPs, as retail investors seek out regulated investment products to gain exposure to digital assets.
Overall, the National Crowdfunding & Fintech Association of Canada’s report highlights the current state of professional investors’ interest in cryptocurrencies and suggests a potential solution to increase adoption through ETPs. While there are still regulatory and skepticism hurdles to overcome, the growing number of cryptocurrency ETPs being launched suggests that the potential for increased adoption is significant.
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- Source: https://zephyrnet.com/majority-of-professional-investors-yet-to-embrace-crypto-but-nearly-half-might-enter-through-etps-national-crowdfunding-fintech-association-of-canada/