Crypto Goes Mainstream: Over Half of Canadian Institutional Investors Embrace Digital Assets in 2023 In a groundbreaking shift, a recent survey reveals that
50% of Canadian institutional investors are now actively offering
crypto asset products to their clients. This marks a significant
9% increase from just two years ago.
The biannual study, conducted by KPMG Canada and CAASA, highlights that nearly
40% of institutional investors now have some form of exposure to digital currencies, up from around 30% in 2021.
Among the preferred investment vehicles,
ETFs and regulated products take the lead, with half of the surveyed investors opting for these options. Additionally,
crypto-related public equities have gained traction, attracting 58% of respondents compared to a modest 36% in the previous year.
While venture capital and hedge funds saw a slight dip in interest, with only a quarter investing as limited partners, Kunal Bhasin from KPMG suggests that the industry's resilience after the FTX collapse and the allure of crypto as an inflation hedge played key roles in this evolving landscape.
Kareem Sadek, also from KPMG, emphasizes that Canada's progressive approach to approving bitcoin and ethereum ETFs and enabling advanced strategies like Ethereum staking has been instrumental in attracting institutional players.
As for portfolio allocation, an impressive third of those surveyed have committed
10% or more to digital assets. This is a substantial leap from a mere 5% in 2021. The growing maturity of the market and improved custody solutions are cited as major factors driving this increased confidence.
With crypto assets gaining recognition as an
alternative asset class, it seems that Canadian institutions are increasingly embracing the potential of digital currencies as they navigate an ever-evolving financial landscape.
