Sygnum’s Institutional Investor Survey
Digital asset bank Sygnum recently conducted an institutional investor survey that reveals a significant shift in sentiment towards cryptocurrency. Over 80% of the respondents now agree that crypto plays an important role in the global financial industry, indicating a move from skepticism to advocacy. The survey, titled "Future Finance 23," was part of Sygnum's inaugural institutional crypto market report and included more than 150 respondents with an average of over 10 years of investment experience. The participants consisted of Sygnum's institutional client base, equity investors, banks, hedge funds, multi and single-family offices, foundations, and asset managers.
Institutional Adoption and Investment Strategies
According to the survey findings, 87% of the respondents currently invest in blockchain protocol tokens such as Bitcoin, Ethereum, and Solana (Layer 1 protocols). Additionally, 57% of the participants plan to increase their crypto asset allocation in the future, indicating a growing interest in the market.
When asked about their reasons for investing in crypto, 66% of the respondents stated that they wanted to gain exposure to the crypto megatrend, while 46% cited portfolio diversification as their investment driver. This suggests that institutions are recognizing the potential of cryptocurrencies and blockchain technologies and are actively seeking to incorporate them into their investment strategies.
Furthermore, the survey reveals that among the respondents who plan to maintain or increase their crypto asset allocations, 62% expect higher future returns. This indicates a growing confidence in the long-term profitability of cryptocurrencies.
Superior Investment and Trust in Regulation
Interestingly, the survey found that 37% of investors consider crypto a superior investment compared to traditional assets. This perception highlights the attractiveness of cryptocurrencies as a hedge in traditional markets.
Moreover, the report emphasizes that direct token investments remain the top choice for all respondents. This reflects a clear preference for investment through direct ownership of tokens and generating yields through staking. However, the report also suggests that this preference might shift as financial products in the crypto space continue to evolve and diversify.
Sygnum's Digital Asset Research Manager, Lucas Schweiger, who authored the report, commented on the survey results. He noted that the crypto industry has witnessed a significant evolution, with many institutional investors transitioning from skeptics to evangelists. Schweiger stated, "Over 80% now agree that crypto has an important role to play in the global financial industry. It's now truly becoming a trusted gateway that is rapidly transforming the economic landscape."
Fabian Dori, Chief Asset Management Officer and Sygnum Group Deputy CEO, added that over 85% of institutional crypto investors in the study believe that being regulated is essential for building trust. This further validates Sygnum's founding strategy of being fully regulated from day one in all regions.
Conclusion
The Sygnum institutional investor survey demonstrates a growing acceptance and adoption of cryptocurrencies among institutional investors. It highlights the increasing interest in blockchain protocol tokens and the belief in their potential for higher future returns. Moreover, the survey reveals that institutions consider crypto as a superior investment and recognize the importance of regulation in building trust. As the global financial industry continues to evolve, crypto is emerging as a trusted gateway that is reshaping the economic landscape.
Frequently Asked Questions
Should You Invest in gold for Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. Consider investing in both.
You can earn potential returns on your investment of gold. It is a good choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. As a result, its value changes over time.
This does not mean you shouldn’t invest in gold. You should just factor the fluctuations into any overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be transported.
As long as you keep your gold in a secure location, you can always access it. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. When the stock market drops, gold usually rises instead.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
You shouldn't buy too little at once. Start with just a few drops. You can add more as you need.
It's not about getting rich fast. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Should you open a Precious Metal IRA
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. It is impossible to get back money if you lose your investment. This includes losing all your investments due to theft, fire, flood, etc.
This type of loss can be avoided by investing in physical silver and gold coins. These items have been around thousands of years and are irreplaceable. They are likely to fetch more today than the price you paid for them in their original form.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
If you decide to open an account, remember that you won't see any returns until after you retire. Keep your eyes open for the future.
Is it possible to hold a gold ETF within a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
A traditional IRA allows for contributions from both employer and employee. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
You can also get an Individual Retirement Annuity, or IRA. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs can be made without tax.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
bbb.org
investopedia.com
How To
Online buying gold and silver is the best way to purchase it.
Before you can buy gold, it is important to understand its workings. Precious metals like gold are similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren’t exchangeable in any currency exchange. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. For every dollar spent, the buyer gets 1 gram of Gold.
The next thing you should know when looking to buy gold is where to do it from. You have a few options to choose from if you are looking to buy gold directly through a dealer. You can start by visiting your local coin shop. You can also try going through a reputable website like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This option can be a good choice for investing in gold because it allows you to control the price.
You can also invest in gold physical. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
A bank or pawnshop can help you buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Customers can borrow money from pawnshops to purchase items. Banks typically charge higher interest rates than pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is simple too. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
—————————————————————————————————————————————————————————————–
By: Kevin Helms
Title: Sygnum Survey Shows Growing Institutional Adoption of Crypto
Sourced From: news.bitcoin.com/survey-4-in-5-institutional-investors-agree-crypto-has-important-role-in-global-financial-industry/
Published Date: Tue, 19 Dec 2023 04:00:05 +0000
Related posts:
More than 75% of Americans Predict a Recession: What They’re Doing to Prepare
Hungary’s Prime Minister Says ‘Europe Has Run out of Energy’ Amid Russia’s Gas Standoff
Understanding the Risks and Rewards of Digital Asset Token Staking for Institutional Investors
Evolution of Crypto Custodians: New Use Cases for Institutional Customers
