Cryptocurrency, Institutional Investing–A new survey has results that may be pertinent to current cryptocurrency investors and those looking towards large scale institutions to enter the market in the near term.
According to a survey conducted by the Global Blockchain Business Council (GBBC) and shared with CoinTelegraph, a whopping 41 percent of polled institutional investors believe they will be entering the Initial Coin Offering (ICO) sector within the next five years, with 16 percent saying it would happen with the next three years. Despite the abundance of scam projects, outright thievery and general lack of regulations, ICOs have continued to be looked upon with equal parts skepticism and innovation. For institutional investors, ICOs appear to be the early entry route for novel and startup coin projects, similar to the current landscape of angel investing in the traditional markets.
While 23 percent of polled institutional investors reported not believing the ICO market held investment potential, a larger percentage indicated plans to get in on the action of cryptocurrency in a time scale that is more near term than other decade-plus predictions. In addition, 19 percent of polled investors stated a belief that digital assets will be regularly invested in by 2021, showing a sway in legitimacy for the market of cryptocurrency that may hold even greater weight with the SEC’s looming ruling on Bitcoin Exchange-Traded Funds.
The survey, which was compiled during December 2018 and January 2019, gives some indication that institutional and large capital investors are looking to crypto with more interest than expected given the ongoing bear cycle. While some analysts have been discussed with the falling valuation for Bitcoin and altcoins, others see a re-alignment occurring in the market, with the industry as a whole growing beyond the short-sighted price speculation that took the market capitalization exponential in late 2017.
Sandra Ro, CEO of GBBC, highlighted in the poll results their finding that cryptocurrency and digital assets would account for at least 10 percent of the global GDP by the year 2027, marking a substantial growth curve for the marketplace over the next decade.
The most recent report by GBBC comes in light of poll results released last month, which also evaluated the landscape of institutional investors in relation to cryptocurrency. At the time, GBBC reported that of polled investors, 63 percent observed a lack of understanding of blockchain technology among senior advisers, given an insight into the current makeup of decision makers. Given the novelty and complexity of cryptocurrency in conjunction with existing financial models, it’s been a regular point of emphasis to grow the industry through broader education and grass root efforts to dispel crypto myths. The goal has been organic growth and real world adoption as opposed to forcing the technology and concept onto entrenched parties, with the corresponding growth in valuation being a natural product of Wall Street and Main Street acceptance.
In comparison to their earlier study, GBBC also reported in January on poll results that yielded 40 percent of institutional investors claiming blockchain to be the most important technological innovation since the development of the internet. While senior executives may not appreciate the monumental shift that cryptocurrency and blockchain bring to the industry of financial technology–and beyond–investors are increasingly making that connection.