Traditional Investors Display More Interest in Crypto

A survey released on March 31 showed that traditional investors think that large companies in the business world would be interested in reaping benefits from the recent crypto dip, especially Bitcoin (BTC).

The Adoption of Digital Asset Trading report published by Acuiti management intelligence platform, around 100 venues capable of trading cryptocurrencies have launched for institutional investors.

The survey indicates greater adoption of digital assets among sell-side service providers (26%) than traditional trading companies (17%). However, it noted that the adoption rates are limited to the CME or Bakkt.

Bitcoin and Ethereum derivatives are of major interest

All the crypto trading companies which were investigated in the report realized that there was a growing interest in Bitcoin derivatives. Around 57% of traditional trading companies have traded Bitcoin, while 29% traded Ethereum (ETH) derivatives.

The survey also noted that although XRP ranks as the eighth most popular digital asset, XRP/USD was ranked 5th in the ranking of the preferred cryptocurrency pair of institutional companies. Their top three factors to be considered are liquidity, volatility, and arbitrage opportunities.

Future looks bright despite security concerns

One of the most important concerns among all trading institutions surveyed, including those still waiting to trade digital assets such as cryptocurrencies, was the security vulnerabilities of exchange and fears over being hacked.

Another concern described in the report is fear of damage to reputation, which is the primary reason why many trading institutions do not want to provide digital assets among their portfolios.

Although the survey still states that adoption rates remain low, the future looks bright in terms of adoption, as 97% of traditional trading companies are considering trading digital assets within the next two years.