More institutions are accepting cryptocurrency as an asset class

over 1 year ago

The hardest part of being in cryptocurrency is not having a defined path towards one's investment, the unintentionality of many in crypto is a general demise to their areas or communities of investment.

Looking at the outside world, one of the major catalysts for growth and sustainability boils down to "investors intentions" towards the sector or industry. When an ecosystem attracts more people with a long term mindset that takes every detail into account and leverages all opportunities to build more value, we tend to observe a totally different form of progress and growth.

That said, lacking this amongst cryptocurrency communities would be a huge industry wide weakness, and although I believe that many projects are in a situation where the community has little faith in the system, but at a general scale of the entire space, I'd say some things point to more intentional investment approaches in the crypto markets.

The increased assets allocation

Although there wasn't much of the industry wide sentiment of "buy the dip" or "buy when there's blood on the streets even if it's yours" all through this bear market, it may actually turn out to be cryptos' most bought out season and it's easy to not notice because things are so cheap and generally far past a market environment to indicate certain volumes of purchase and also, people seem to be more DCA traders at this point, which shows a wide range of crypto and investment education.

The Nasdaq-listed cryptocurrency exchange Coinbase published Thursday the findings from a survey it sponsored to understand how decision-makers at U.S. institutions view digital assets. The survey was conducted independently by Institutional Investor Custom Research Lab between Sept. 21 and Oct. 27.

A total of 140 institutional investors in the U.S. participated in the survey, representing about $2.6 trillion in assets under management. Coinbase was not involved in sourcing the respondents.

“62% of investors who are currently invested in crypto increased their allocations in the past 12 months (vs. 12% who decreased their allocations). This is evidence that institutional investors have continued to take a long-term view of the asset class even as prices have fallen,” the crypto firm detailed.

^{From news.bitcoin.com}

What we're looking at here is 62% of a trillion dollar ecosystem applying more intentionality to cryptocurrency investments. The report goes on to say that about 58% expect to increase their asset allocation over the next 3 years and 71% believe that cryptocurrency is here to stay.

Clearly, the general public no longer sees crypto as a money grab or pump and dump ecosystem as the technology has proven to apply to general finance, significantly. Through the diverse application release and industry wide advancement, as an ecosystem, we are moving from peer to peer payments to deploying more technical financial products.

Although, on a large scale, these products need more careful management structures and an application of sustainability to the code, we still are in process and timely progressing into what becomes the new form or platform for business building. The figures are there, the efforts are there, the applications, the users, all paint pictures of success and it's only the beginning.

The more we put things down and strategically build regardless, the faster we grow as an industry.