Just over a quarter (26%) of institutional investors, including pension funds, are set to increase their level of investment in cryptoassets by 2025, according to Evertas.
The cryptoasset insurance company said investment in Bitcoin and various other digital currencies and assets would be prevalent among a range of institutional investors along with pension funds, including insurers, family offices and sovereign wealth funds.
On top of the 26%, Evertas' research found a further 64% of institutional investors still expect a slight rise in cryptocurrency allocations in the next five years.
A total of 84% of funds surveyed by Evertas said the reason for increasing their exposure to cryptoassets was their expectation that the regulatory infrastructure of the market would dramatically improve in that time.
Four in five respondents also said the cryptomarket would expand significantly by 2025, providing more liquidity.
Another three-quarters of respondents said it was also because they anticipated more mainstream fund managers and financial services companies to enter the market, providing a greater range of investment vehicles to choose from.
The research showed more than half (56%) of investors were still "very concerned" over the lack of insurance cover for cryptoassets, however.
Evertas chief executive and founder J Gdanski said: "There are clearly may issues regarding the infrastructure that supports these markets that still concern them [and] these clearly need to be addressed if the full potential of investment from institutional investors in cryptoassets is to be realised."
CTI's Chris Wagstaff considers what climate change risk comprises through the lens of an institutional asset owner.
A third of asset managers (39%) were unable to provide a single example of a climate change related engagement effort despite 76% saying they “consider climate related risks and opportunities”, according to a recent survey from Redington’s manager research...
Market Movers Blog: HSBC share price takes hit in Asian trading after allegations of money laundering emerge
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Letter to investors
Outflows from UK equity funds gathered pace in August, with £2.6bn of assets being pulled from the market area over the course of the month, according to Morningstar’s latest fund flows report.