by Kevin Helms
Institutional investors are optimistic about the U.S. Securities and Exchange Commission (SEC) having more power to regulate the crypto market, a recent survey shows. They believe that if the SEC is granted extra powers, the prices of cryptocurrencies will be positively impacted.
Nickel Digital Asset Management, a regulated European digital asset hedge fund manager, recently released a report on the institutional adoption of crypto assets.
The report includes a survey and interviews with 50 wealth managers and 50 institutional investors across the U.S., the U.K., Germany, France, and the United Arab Emirates (UAE). They collectively manage around $108.4 billion.
The report explains that security concerns top the list of why institutional investors are skeptical about investing in crypto assets. According to the survey results, 79% of all respondents see asset custody as the key consideration for investing in the crypto space. The report further notes:
This was followed by 67% who said price volatility, 56% who cited market cap, and 49% who said the regulatory environment.
“Further 12% included the carbon footprint from Bitcoin and other cryptocurrencies in their top three reasons for not investing,” the report adds.
Respondents were also asked about crypto regulation. SEC Chairman Gary Gensler has called on Congress to provide the SEC with more power to regulate crypto exchanges and activities such as trading and lending.
The majority of respondents are optimistic about the prospect of the SEC being empowered with more authority to regulate crypto assets. Among them, 76% expect this will be granted this year.
The report detailed:
If the SEC is granted these extra powers, 73% of institutional investors and wealth managers believe this will have a positive impact on the price of crypto and digital assets and 32% believe it will have a very positive effect.
Do you think the SEC should have more power to regulate the crypto space? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Italian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG
The Italian luxury sports car manufacturer headquartered in Maranello, Italy, Ferrari has announced the firm is partnering with Velas Network AG, a firm that specializes in blockchain and non-fungible token (NFT) technology. Ferrari Reveals Partnership With Blockchain Firm Velas On … read more.
Tokenized Bitcoin in Circulation Nears a Half Million BTC, Bitcoin-Pegged Token Value Exceeds $21 Billion
According to data recorded on December 28, there’s approximately 434,265.43 bitcoin-pegged or wrapped bitcoin tokens worth more than $21.3 billion across several blockchains. Ten different bitcoin-pegged projects exist today and the project Wrapped Bitcoin dominates 59.66% of all the tokenized … read more.
Institutional Investors Say SEC Having More Power to Regulate Crypto Will Boost Prices – Regulation Bitcoin News – Bitcoin News
by Kevin Helms