Investors want crypto, but not without TradFi backing

According to a survey conducted by Nomura’s digital asset division, professional investors in the crypto market still maintain interest but are hesitant to fully engage without the support of major traditional financial institutions. The survey revealed that 90% of the polled investors considered the backing of a “large traditional financial institution” as crucial before they or their clients would consider investing in crypto assets or funds.

The interest of institutional investors in the crypto space has experienced a slowdown recently, primarily due to growing regulatory uncertainty and increased regulatory scrutiny in the United States affecting the broader industry.

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Despite this cautious approach, an overwhelming 96% of the surveyed investors acknowledged digital assets as an opportunity for diversification in their investment portfolios. They viewed cryptocurrencies as a potential addition to traditional asset classes like fixed income, cash, equities, and commodities.

Observing the market, experts anticipate a rise in institutional investment following the application for a BlackRock spot ETF (Exchange-Traded Fund).

In addition to the aforementioned findings, the survey also revealed that 82% of the professional investors interviewed expressed optimism regarding the overall crypto asset class in the coming year. Specifically, they highlighted Bitcoin and Ethereum (ETH) as significant players, with nearly half of the respondents considering them to be the building blocks of the Web3 economy and a “persistent source of investment opportunities.”

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