Sygnum’s Institutional Investor Survey
An institutional investor survey conducted by digital asset bank Sygnum has revealed a significant shift in sentiment towards cryptocurrency. Over 80% of respondents now agree that crypto plays a crucial role in the global financial industry, marking a move from skepticism to advocacy. The survey, titled "Future Finance 23," was conducted at the beginning of Q4 and included over 150 institutional investors with an average of 10 years of investment experience. Respondents consisted of Sygnum's institutional client base, equity investors, banks, hedge funds, multi and single-family offices, foundations, and asset managers.
Growing Adoption of Blockchain Protocol Tokens
According to the survey, 87% of respondents currently invest in blockchain protocol tokens such as Bitcoin, Ethereum, and Solana. This demonstrates the increasing acceptance of cryptocurrencies within the institutional investor community. Furthermore, 57% of respondents plan to further increase their crypto asset allocation in the future, indicating continued growth in the adoption of digital assets.
Reasons for Investing in Crypto
The survey also shed light on the motivations behind institutional investors' crypto investments. 66% of respondents stated that they invest in crypto to gain exposure to the crypto megatrend, recognizing the potential for significant returns in this emerging market. Additionally, 46% of respondents cited portfolio diversification as a key driver for investing in cryptocurrencies. These findings highlight the growing understanding and appreciation of blockchain technologies among institutional investors.
Expectations of Future Returns
The survey revealed that among respondents who plan to maintain or increase their crypto asset allocations, 62% expect higher future returns. This optimistic outlook demonstrates a belief in the long-term growth potential of cryptocurrencies and further supports the trend of institutional adoption.
Crypto as a Superior Investment
Interestingly, 37% of investors consider crypto to be a superior investment compared to traditional assets. This perception showcases the attractiveness of cryptocurrencies as a hedge in traditional markets. The report notes that direct token investments remain the top choice for all respondents, indicating a clear preference for owning tokens directly and generating yields through staking. However, the preference for direct ownership may evolve as financial products in the crypto space continue to evolve and diversify.
Regulation and Trust
The survey also addressed the importance of regulation in building trust among institutional investors. Over 85% of participants believe that being regulated is essential for establishing trust in the crypto industry. This finding further validates Sygnum's approach to be fully regulated in all regions from the beginning, ensuring a secure and trustworthy platform for their clients.
In conclusion, the Sygnum institutional investor survey highlights the growing advocacy and adoption of cryptocurrencies within the institutional investor community. With an increasing number of respondents investing in blockchain protocol tokens and planning to increase their crypto asset allocations, it is evident that the role of crypto in the global financial industry is becoming more prominent. As institutional investors embrace cryptocurrencies, the economic landscape is rapidly transforming.
Frequently Asked Questions
How much should precious metals be included in your portfolio?
Protect yourself against inflation by investing in physical gold. This is because when you invest in precious metals, you buy into the future value of these assets, not just the current price. So as prices rise, so does the value of your investment.
Gains will be taxed if you keep your investments for at minimum five years. After that time, capital gains taxes will be due. Our website has more information about how to purchase gold coins.
How Much of your IRA Should Be Made up of Precious Metals
Protecting yourself from inflation is best done by investing in precious metals such silver and gold. This is not only an investment for retirement, but it can also help you prepare for any economic downturn.
Gold and silver prices have increased significantly over the past few years, but they are still considered safe investments because they don’t fluctuate as much as stocks do. These materials are always in demand.
Predictable and stable prices for gold and silver are common. They increase with economic growth and decrease in recessions. They are great money-savers as well as long-term investments.
Precious metals should make up 10 percent of your portfolio. If you want to diversify even further your portfolio, that percentage could rise.
Is gold IRAs a good way to invest?
The best way to invest in gold is by buying shares in companies that mine for it. These companies can make you money by investing in precious metals and gold.
However, there are two drawbacks to owning shares directly:
Holding on to your stock for too many years can lead you to losing money. When stocks decline, they fall further than their underlying asset (like gold). It could lead to you losing your money, instead of making it.
Second, you could miss out on potential profit if you wait for the market to recover before you sell. Therefore, you might need patience and wait for the market recovery before making any profit from your gold investments.
However, if you want to separate your investments from your financial affairs, physical gold can still be a great investment option. A gold IRA can help you diversify your portfolio, and protect against inflation.
Visit our website for more information on gold investing.
Can I place gold in my IRA account?
The answer is yes You can add gold to your retirement plan. Gold is an excellent investment because it doesn’t lose value over time. It protects against inflation. It also protects against inflation.
You need to understand that gold is not like other investments before you invest in it. You can’t purchase shares in gold companies, unlike stocks and bonds. Nor can you sell them.
You must instead convert your gold into cash. This means that you’ll have to get rid of it. You can’t just hold onto it.
This makes gold different from other investments. Similar to other investments, gold can be sold at any time. But that’s not the case with gold.
You can’t even use your gold as collateral to get loans. You may have to part with some of your gold if you take out mortgages.
What does this all mean? It’s not possible to keep your gold for ever. It will eventually have to be converted into cash.
You don’t have to worry about this now. You only need to open an IRA account. Then, you can invest in gold.
Statistics
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The maximum yearly contribution to an individual’s IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
External Links
kitco.com
wsj.com
investopedia.com
en.wikipedia.org
How To
How to Buy Gold for Your Gold IRA
Precious metal can be used to refer to gold, silver or platinum as well as osmium and ruthenium. It refers only to elements with atomic number 79-110 (excluding helium). These elements are considered valuable because they are rare and beautiful. The most common precious metals are gold and silver. Precious metals can be used to make money, jewelry, industrial products, and art objects.
Gold’s price fluctuates each day due to supply/demand. In the past decade, there has been a huge demand for precious metals as investors seek safe havens from unstable economies. This increased demand has caused prices to rise significantly. Some people are concerned about investing in precious metals due to the rising cost of production.
Gold is a solid investment as it is both rare and long-lasting. The value of gold is never lost, which is unlike many other investments. Plus, you can buy and sell gold without paying taxes on your profits. There are two methods to invest gold. You can purchase gold coins and bars or invest in gold futures contracts.
In-dispute liquidity can be achieved with physical gold bars or coins. They are easy for you to store and trade. But they don’t offer much protection against inflation. Consider purchasing gold bullion if you want to be protected from rising prices. Bullion is physical gold, which comes in many sizes and shapes. While some billions are sold in one-ounce portions, others come in larger pieces such as kilobars. Bullion is often stored in vaults, which are safe from fire and theft.
Gold futures can be a great way to buy shares rather than actual gold. Futures allow you to speculate as to how the gold price will change. You can buy gold futures and get exposed to the price of gold without actually owning it.
For example, if I wanted to speculate on whether the price of gold would go up or down, I could purchase a gold contract. When the contract expires, my position will either be “long” or “short.” A long contract indicates that I believe the price for gold will rise. Therefore, I’m willing give money to someone now in exchange of the promise that I will get more money after the contract ends. A short contract on the other side means that I believe gold’s price will fall. I’m happy to accept the money right now in exchange of the promise that I’ll make more money later.
I will receive the amount of gold in the contract, plus interest, when the contract ends. By doing this, I can get exposure to the market price for gold without actually owning it.
Precious metals are great investments because they’re extremely hard to counterfeit. While paper currency can be easily counterfeited simply by printing new notes, precious metals cannot. Precious metals have remained stable over time because of this.
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By: Kevin Helms
Title: Sygnum Survey Reveals Growing Institutional Advocacy for 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
