According to asset managers, they are not a suitable investment for most retail investors.
To a large extent, 2021 was the year in which cryptocurrencies were finally adopted by institutional investors. But now these same asset managers say the asset is ready for a big sale next year.
Digital assets are the “main contender” for a “big correction” in 2022 – almost three quarters of surveyed institutional investors in a survey of Natixis Investment Managers said they are not a suitable investment for most retail investors, according to Bloomberg.
Meanwhile, 28% of all respondents are currently investing in cryptocurrencies, with nearly a third saying they plan to increase their holdings next year. In general, 8% of all institutional investors in the survey – ie. all who are investing or not in digital assets at the moment – plan to increase their assets in the segment next year.
The total amount of assets managed by the respondents amounts to 12.3 trillion. dollars.
This year, a number of large fund managers and pension funds have entered the depths of cryptocurrencies, as well as some big names among investors known for their ingenuity in the financial markets. Many have said that digital assets such as bitcoin could be a good escape from inflation in the current stimulus environment.
The volatile nature of cryptocurrencies does not always lead to large declines. The Bloomberg index, which includes the leading cryptocurrencies – Bloomberg Galaxy Crypto, has advanced by approximately 200% since the beginning of 2021.
In a Natixis poll, about 40% of respondents said they recognized cryptocurrencies as a possible investment option, although central banks would have to regulate them.
Predictions of bitcoin’s demise have been common since it came to light more than a decade ago. For now, however, there is no prospect of this happening any time soon – bitcoin has risen more than 5,000% in the last five years since it became more prominent in the public eye.
The Natixis survey was conducted by CoreData Research in October and November, involving 500 institutional investors in several countries. Among them are central banks, over 20 sovereign wealth funds and over 150 corporate pension funds.
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