Sygnum Banks report reveals some shifts in the way institutional investors perceive and approach cryptocurrencies, based on their recent survey. The survey, which included than 150 respondents, with an average of over 10 years of experience in investment was conducted before the significant rally in the crypto market in November 2023.
These respondents consisted of Sygnums clients, equity investors well as professionals from banks, hedge funds, family offices, DLT foundations, funds and asset managers. It’s worth noting that the survey focused on investors and did not include retail investors.
The survey findings indicate an outlook for the market in 2024. Notably 60% of respondents express optimism. Anticipate returns in the upcoming year. This optimistic sentiment signifies a shift in how institutions view cryptocurrency investments.
Many investors now see crypto as an opportunity not to participate in market gains but also as a means of hedging against traditional markets by considering it a “safe haven” strategy. Interestingly there is a preference among these investors for investing in tokens with a focus on well established cryptocurrencies like Bitcoin BTC 5.92% and Ethereum ETH 3.86% due to their perceived potential for generating alpha. Additionally there is an emerging trend where tokenized real estate garners more interest, from investors compared to venture capital and art collectibles.
Lucas Schweiger, the Research Manager, at Sygnum Digital Asset and author of the report pointed out that many institutional investors have changed their perspective from being skeptical to becoming advocates for cryptocurrencies. Now than 80% of them acknowledge the role that crypto plays in the global financial industry.
Fabian Dori, who is the Chief Asset Management Officer and Deputy CEO of Sygnum Group highlighted that over 85% of crypto investors believe that being regulated is crucial for establishing trust. This viewpoint is in line with Sygnums approach as they have been fully regulated since their inception.
The release of this report comes after Sygnum achieved milestones. They successfully raised $90 million to enhance their FINMA regulated access to DeFi, which valued their company at $800 million.
This fundraising effort will support their plans for expansion into markets and the development of solutions with strategic investors. Additionally Sygnum has surpassed $2 billion, in assets under management (AUM). Has gained a customer base exceeding 1,000 clients globally.