Institutional crypto adoption fueled by trade tensions

Trade Tensions Speed Institutional Crypto Adoption, Execs Say

A growing number of institutional investors are turning to cryptocurrencies as a hedge against market volatility and trade tensions, according to a recent survey of executives in the financial industry.

The survey, conducted by investment firm, Galaxy Digital, found that 64% of respondents believe that the ongoing trade tensions between the United States and China will lead to increased adoption of cryptocurrencies by institutional investors.

"We're seeing a significant increase in interest from institutional investors who are looking for alternative assets to diversify their portfolios," said Mike Novogratz, CEO of Galaxy Digital. "The trade tensions are creating a perfect storm of uncertainty, and cryptocurrencies are seen as a way to hedge against market volatility."

The survey also found that 55% of respondents believe that cryptocurrencies will be a major investment theme in the next 12 months, with 42% saying that they are already invested in cryptocurrencies or are considering investing in the near future.

"We're seeing a lot of interest from family offices, endowments and pension funds who are looking for alternative assets to generate returns," said Robert Gutmann, CEO of BlockTower Capital. "Cryptocurrencies are seen as a way to generate returns that are uncorrelated to the traditional markets, and that's very attractive to institutional investors."

The survey also found that 71% of respondents believe that the regulatory environment for cryptocurrencies will improve in the next 12 months, with 55% saying that they are already working with regulators to develop new products and services.

"We're seeing a lot of progress on the regulatory front, and that's creating a lot of confidence among institutional investors," said Novogratz. "The regulatory environment is becoming more clear, and that's making it easier for institutional investors to get involved in the space."

The survey was conducted among 100 executives in the financial industry, including hedge fund managers, family office executives, and institutional investors. The results are seen as a sign of growing institutional interest in cryptocurrencies, which could lead to increased adoption and investment in the space.