Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Almost 40% of institutional investors in Canada had exposure to crypto assets in 2023, according to a KPMG survey. This indicates a notable recovery from the downturn experienced in the market during 2022.
The survey conducted by KPMG in Canada and CAASA revealed that 39% of Canadian institutional investors reported having either direct or indirect exposure to crypto assets in 2023, an increase from 31% in 2021.
“When we last conducted this survey in 2021, it was a robust year for crypto assets,” stated Kunal Bhasin, a partner at KPMG in Canada’s Digital Assets practice.
He noted that the subsequent year was marked by instability, influenced by significant collapses of major crypto firms and a rise in fraudulent activities. However, he mentioned that these occurrences had a “cleansing effect” on the crypto sector.
“Our survey results indicate that crypto assets are increasingly regarded as a viable alternative asset class among institutional investors and financial services organizations in Canada.”
Additionally, the survey indicates a remarkable rise in the number of institutional investors directly holding cryptocurrencies last year – a 75% increase from 29% in 2021.
Interestingly, their exposure to crypto through exchange-traded funds has remained stable, despite the approval of US spot Bitcoin ETFs earlier this year. Consistently, 50% of investors have maintained exposure to crypto via ETFs and other regulated products since 2021.
The survey also pointed out a significant rise in Canadian institutional investors accessing crypto holdings through public equities and derivatives.
Related Posts
“A crucial moment for crypto assets occurred in January 2024, when the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs,” remarked Kareem Sadek from KPMG’s Digital Assets practice.
What Has Canada’s Crypto Adoption Been Like?
Mark Greenberg, Managing Director for Canada at Kraken, mentioned in an interview with Nasdaq last year that crypto adoption is thriving and gaining mainstream attention among Canadians.
“We are observing increased adoption across all segments of the Canadian marketplace, including individuals, institutions, and various demographics.”
At that time, Greenberg expressed optimism that crypto adoption would continue to grow in Canada in the coming years. “I am optimistic about cryptocurrencies on a global scale and even more so in Canada, where a significant portion of the population is underserved by the current traditional financial system.”
On a global scale, the crypto market is expected to see a substantial rise in institutional interest this year, as noted by analyst Mathew McDermott of Goldman Sachs.
“This would expand and enhance liquidity in the market, attracting institutional investors such as pension funds and insurance companies that might otherwise be hesitant to engage directly with crypto assets,” McDermott stated earlier this year.
The post 39% of Institutional Investors in Canada Had Crypto Exposure in 2023: KPMG appeared first on Cryptonews.
