Survey Claims 72 Percent of Finance Executives Optimistic for Future of CryptocurrenciesSep 14, 2018 at 19:06
A survey report released by Greenwich Associates revealed that 72 percent of institutional finance executives believe that cryptocurrencies are here to stay and has a big role in the future of the industry.
As reported by Forbes, Richard Johnson, the firm’s vice president for market structure and technology explained that the survey was conducted between April and August this year and involved 141 institutional investment executives.
Likewise, majority of the respondents believe that a regulatory framework will develop around cryptocurrencies that will lead to growth and innovation. However, they also feel that only a few cryptocurrencies will survive and continue to perform even if many others fail.
On the other hand, 10 percent of the executives that were asked are keen that cryptocurrencies will remain a fringe asset class without mainstream adoption and another 10 percent are pessimistic that a regulatory crackdown will kill the entire market.
It can be noted that the timing of the survey is during one of the toughest season for the industry with the market nursing a decline of over 70 percent from its peak late last year that was driven by regulatory uncertainties that raised various questions of stability for cryptocurrencies.
The survey also highlighted that the Securities and Exchange Commission’s rejection of nine filings for Bitcoin exchange traded funds last month also became a factor in the survey’s result.
Greenwich Associates added that despite the proliferation of high-profile projects and partnerships including the Intercontinental Exchange’s Bakkt, Northern Trust’s recent blockchain expansion and Citigroup’s exploration of crypto custody solutions, institutional participation in cryptocurrency can still see higher penetration.
Forbes’ report also mentioned that the survey identified that financialization and custody of cryptocurrencies are major factors that can still be improved by the industry in order to attract more support from banks, asset managers, hedge funds and other large financial institutions.
— Greenwich Associates (@GreenwichAssoc) September 12, 2018
“We’ve had a terrible market for crypto this year but people are still coming out with a lot of great innovation and a lot of great ideas,” Johnson expressed.
The summary of Greenwich Associates’ report can be accessed here but access to the full results require a fee.