A Coinbase survey shows a Surge of investors increased their crypto allocations over 12 months despite the massive fall in the crypto market price of over 80%. It seems as though Crypto winter is not as cold as people expected.
Prior to the meltdown of Sam Bankman-Fried‘s FTX and Alameda, (two firms that initially filed for bankruptcy protection and sent ripples across the crypto market).
Institutional Investor Custom Research Lab conducted a survey, sponsored by Coinbase, to understand the current sentiment and outlook of decision makers at US institutions toward digital assets since the start of the crypto winter.
A total of 140 institutional investors in the US participated in the survey, representing assets under management of about $2.6 trillion.
The 2022 Digital Assets Outlook Survey, conducted in partnership with Institutional Investor shows that 62% of investors currently invested in crypto increased their allocations in the past 12 months of crypto winter compared to the 12% who decreased allocations.
The exchange suggests that this occurrence appears to be evidence that institutional investors have and will continue to take a long-term perspective of the asset class, even as prices have fallen.
It also states that according to the poll, looking ahead, 58% of investors are expected to increase their allocations over the next three years and a majority of investors (59%) are currently using or planning to use a buy-and-hold approach.
Results from the survey also revealed that investors are planting seeds for the future, nearly a fifth of the investors are deploying or planning to deploy crypto in their investment framework to develop or improve their internal infrastructure. This highlights the presence of a community of investors using pointers from the existing environment to learn and build for the future.
Regarding future expectations towards the fate of crypto and digital assets, overall sentiment has remained positive with over 72% supporting the view that digital assets are here to stay.
Given the current climate, this is a strong signal of resilience and acceptance of crypto by many as an asset class that’s worth it.
