As Bitcoin’s popularity has risen, the academic world has become increasingly interested in how people think about the cryptocurrency and the changing financial landscape. Over the past few weeks, several different age groups from all over the world have been examined to find out just how they feel about Bitcoin, which has brought both surprising and unsurprising statistics to light.
However, a possibly influential group whose thoughts were not represented in any survey is that of institutional investors. The latest survey which focused on this group, however, had some interesting insights to share.
Prominent Wall Streeters and finance leaders have made no secret of their negative feelings regarding cryptocurrencies, however not all employees in the institutional investing sector have shared their opinions. Despite CEOs like Jamie Dimon and Tidjane Thiam denouncing Bitcoin, the average trader is still very much fascinated by Bitcoin, according to the latest survey.
The survey, which was conducted by Triad Securities at the beginning of November, asked 317 institutional investing traders to participate.
Of the 317 participants, 31% confirmed that they had bought Bitcoin or another cryptocurrency. Over half of the 31% obtained Bitcoin only in the last six months. When asked whether they would consider buying Bitcoin, 36% confirmed that they are currently actively considering the option. Notably, 1.5% of participants stated that they did not know about Bitcoin.
The group of institutional investors was also asked about their thoughts on initial coin offerings (ICOs). The group seemed less enthusiastic about ICOs, as only 8% admitted to previously investing in them. 48% stated that they had not even considered ICOs. While 29% acknowledged the benefits of ICOs, another 15% indicated that they would only consider ICOs once more regulation is put in place to address the dangers surrounding them.
When participants were asked how confident they were in Bitcoin custodial offerings, 9% of participants indicated a high confidence, while 26% claimed a low confidence. Ironically enough, Coinbase confirmed shortly after the survey was concluded that they would implement cryptocurrency asset management, a feature which is specifically directed at institutional investors. While this feature could perhaps have swayed they survey’s outcome, it was impossible for the group to have predicted.
The final part of the survey was explicitly focused on the future of Bitcoin and how the investors envisioned it. The study revealed that 41% of investors considered Bitcoin to become as valuable as gold, while 39% believed Bitcoin to be an investment bubble that’s due to collapse. Concerning the price, 27% of participants felt that Bitcoin will continue its growth, albeit more gradually, while 17% noted that Bitcoin’s value would double within six months.
The conflicting feelings from institutional investors are perhaps not completely surprising. Institutional investors are used to stocks and commodities which demonstrate a more gradual growth, which could make Bitcoin seem unstable and dangerous to these trained eyes. While it’s impossible to predict the future Bitcoin price, we do know that Wall Street will be paying attention.