3nd Quarter 2020 Edition of the Crypto Research Report
Results of the first survey done on accredited investors in the German-speaking countries.
Dear Crypto Asset Investors and Friends,
To provide a deeper understanding of how professional investors feel about digital assets, Cointelegraph Research and Crypto Research presents the Discovering Institutional Demand for Digital Assets in the DACH report on which coins wealthy investors already own and which ones they plan to buy in the coming months. The report also covers the most popular regulated funds and structured products that are designed for investors from the traditional finance realm.
Supported by SIX Digital Exchange, BlockFi, Bitmain, Blocksize Capital, and Nexo, the Crypto Research Report can be downloaded from the following links:
Crypto Research Report – (75 pages) – English
Crypto Research Report – (75 pages) – Deutsch
This landmark study on institutional demand for crypto assets in the German-speaking countries was written by eight authors including Demelza Hays, Professor Dr. Philipp Sandner, Professor Dr. Alfred Taudes, Dr. Karin Lorez, Pascal Hügli, Matthias Reder, Matthias Langer, and Lara Olms. In six chapters and more than 70 pages, the authors provide a critical and academic perspective on the legal, technical, and economic aspects of crypto assets. Key topics covered in the report:
36% of professional investors have bought blockchain-inspired assets before. The majority of respondents invested in 2018 or after and allocate less than 5% of their portfolio to crypto.
Out of the remaining 64% that have not yet invested, 39.29% plan to invest. This results in 61.15% of investors in the survey either already owning digital assets or planning to buy in the future.
Around 88% of respondents are exposed to Bitcoin. However, institutional investors appear to be increasingly interested in security tokens. Out of the 39.29% of investors that plan to invest in the future, security tokens were more popular than Ethereum and other alternative coins.
Figure 1: The Majority of Accredited Investors Allocate Less Than 5% to Crypto
An important observation is that institutional investors that have invested in digital assets have distinctly different portfolios compared to ones that have no exposure to this asset class. Digital asset investors have significantly fewer bonds, more commodities, and more cash reserves than investors with no exposure to digital assets. This is in line with the ethos of the industry — lower trust in government bonds, higher trust in sound money, and growing cash reserves in expectation of a recession.
Figure 2: Investors That Buy Crypto Have Less Government Debt
The total assets under management managed by the 55 asset allocators that participated in the survey was over €719 billion, which is more than double the entire market capitalization of the digital asset market. Some retail investors hold cryptographic assets for speculation rather than for use as a medium of exchange. They hope to “front-run” Wall Street by buying in before bigger pockets enter the market. Putting the fear of missing out aside, there are genuine reasons to be excited about institutional investors joining the space. Institutional investors hold the majority of the world’s wealth. The sheer size of the wealth managed by professional investors like pension funds, university endowments, and insurance companies is enough to have a dramatic impact on the entire digital asset industry if they enter the market. For years, there have been rumors that institutional investors were starting to buy cryptocurrencies, and now, the most recent academic survey provides evidence that this rumor is true.
We are happy to announce that the Crypto Research Report has struck a strategic partnership with Cointelegraph, the largest crypto news company in the world. This edition of the Crypto Research Report is available on the Cointelegraph website, which gets over 6 million views a month. Our Q4 report will also be available on Cointelegraph.
Last but not least, we especially want to thank our Ongoing Premium Partners of the Crypto Research Report, Coinfinity in Graz. Coinfinity is a broker in Austria that is famous for creating an easy to use Bitcoin cold wallet called The Card Wallet. Coinfinity also enabled Bitcoin purchases at 4.000 retail outlets across Austria via the Bitcoinbon program. In addition to Coinfinity, we are exuberant that Bitpanda has joined as a Premium Partner of the Crypto Research Report! Bitpanda is a fully licensed exchange based in Austria. They have recently added Bitpanda Pro, which offers more liquidity and lower fees. We are personally excited about Bitpanda Metals, which allows investors to diversify their portfolio with physically backed and 100% insured precious metals.
Kind regards from Liechtenstein in the Crypto Rhine Valley,
The CRR Team
Crypto Research Report
9492 Eschen/Liechtenstein
Mail: info@cryptoresearch.report
Web: www.cryptoresearch.report
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