Survey: Majority of endowment funds are looking into cryptocurrencies

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Survey: Majority of endowment funds are looking into cryptocurrencies
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During a survey from Global Custodian, The TRADE Crypto, and BitGo, it was revealed that 94% of endowment funds are looking into cryptocurrencies, reports TheTradeNewsCrypto.

Pulling in the information

The survey pulled information from 150 respondents in Q4 of 2018. The majority stated they have put money into “crypto-related initiatives” in the past year.

Interestingly, there were other factors regarding cryptocurrencies as well. For example, 7% of respondents claimed they expect their investments to go down in value over the next 12 months. Unsurprisingly, these concerns came from crypto’s regulation uncertainties on top of the asset’s volatility.

Jonathan Watkins, managing editor of Global Custodian and The TRADE, commented on the survey:

“It’s fascinating to see that despite the widely-publicised concerns around regulation, custody and liquidity, endowments have been factoring crypto-related investments into their allocations, and very few are showing intentions of stepping away. All the talk over the past 18 months has been around when institutional investors will begin participating in cryptocurrency investments, but it turns out they had already arrived, in the form of endowment funds.”

One should note, however, that 89% of these respondents are in the United States. The remaining few are in the United Kingdom and Canada. On top of this, those with responses are in an advisory role regarding the endowment.

Further statistics show interesting claims

Around half (54%) of those surveyed claim their investment was direct. The other 46% state “exposure through funds of one kind or another.”

Those investing also envision themselves as “more adventurous” than others in the same field. Moreover, 50% believe that endowments involving themselves in crypto will grow over the next year. 45% believe otherwise, however.

Also, respondents say that for them to invest in an asset, the currency must have “robust regulation, sufficient capital flow and liquidity, and account security” like Bitcoin (BTC). Otherwise, those surveyed are excited but within reason. Nobody here wants to lose their investment on digital assets, but they’re open to the idea of cryptocurrencies becoming mainstream.

About Max Moeller

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Cryptocurrency and games writer. Looking to the future by studying how these two industries can blend. LinkedIn: https://www.linkedin.com/in/maxwell-moeller-912044b4/