KPMG: 39% of Canada’s Institutional Investors Have Exposure to Crypto

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As someone who closely follows the financial industry and digital assets space, I find the increasing adoption of cryptocurrencies among Canadian institutional investors quite intriguing. According to KPMG’s latest survey, nearly 40% of these investors have sought exposure to cryptocurrencies in 2023, marking a significant surge from previous years.

Approximately forty percent of institutional investors in Canada have pursued investing in cryptocurrencies as per a recent survey conducted by KPMG. The study, carried out in collaboration with CAASA, revealed that the number of Canadian institutions holding direct or indirect cryptocurrency investments had increased by thirty-one percent from 2021 to 2023.

According to Kunal Bhasin, a partner at KPMG Canada’s Digital Assets practice, crypto assets showed strong expansion in our 2021 survey.

Looking back, Bhasin conceded that the crypto market in 2022 experienced rough waters with notable bankruptcies among crypto companies and a rise in deceitful practices. Nevertheless, he believes that these hardships served to purge the crypto sector of impurities.

According to our survey results, crypto assets are gaining popularity as a viable investment option among institutional investors and financial organizations based in Canada.

Institutional investment in cryptocurrencies directly has experienced a significant increase, reaching 75% in 2021 compared to 29% three years prior. Meanwhile, their involvement in crypto via exchange-traded funds (ETFs) and other regulated products has remained steady at around 50%.

I’ve observed an intriguing development in the Canadian institutional investing landscape as per the latest KPMG survey. Institutional investors in Canada are reporting significant access to crypto holdings via public equities and derivatives. A noteworthy turning point, according to Kareem Sadek from KPMG’s Digital Assets practice, was this year when the US Securities and Exchange Commission (SEC) gave its approval for spot Bitcoin Exchange-Traded Funds (ETFs).

Canada’s Rising Adoption of Crypto

In a recent conversation with Nasdaq, Mark Greenberg, the Canadian Managing Director at Kraken, shared his conviction that the use and acceptance of cryptocurrencies will continue to expand among Canadians, eventually becoming a popular trend.

I’ve observed an increasing trend in Canada, where individuals, institutions, and diverse demographics are all embracing this adoption with confidence.

With a positive outlook, he believed that the use of cryptocurrencies would continue to rise significantly in Canada. He was particularly enthusiastic about this trend due to the large number of Canadians who currently lack adequate access to conventional financial services.

As an observer, I’ve noticed that some prominent market analysts anticipate a surge in institutional adoption of cryptocurrencies on a global scale this year, 2024. This trend is expected to bring about several positive outcomes. For one, it will introduce more liquidity into the market, thereby enhancing market stability and reducing volatility. Furthermore, the availability of regulated crypto products will attract traditional investors such as pension funds, who may otherwise be hesitant, to explore exposure to this asset class.

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2024-04-25 14:54