The landscape of cryptocurrency investment in Canada is witnessing a significant shift, with a recent survey showing that 39% of institutional investors now hold crypto assets, up from 31% in 2021. This increase reflects a broader acceptance of cryptocurrencies as legitimate investment options among Canadian financial institutions, driven by a year marked by recovery and regulatory advancements.
The survey, conducted by KPMG in Canada and the Canadian Association of Alternative Strategies & Assets (CAASA), indicates a robust growth in crypto adoption, not just in direct holdings but also through various financial services. Half of the surveyed financial services now offer crypto-related services, an increase from the previous year. This rise is attributed to several factors, including the instability of traditional financial markets, increasing U.S. debt levels, and dollar inflation, which have positioned cryptocurrencies as a viable hedge against economic uncertainty.
The growing institutional interest is also fueled by improved market infrastructure and the performance of leading cryptocurrencies like Bitcoin, which saw a significant increase in value. Furthermore, the U.S. Securities and Exchange Commission's recent approval of spot Bitcoin ETFs has also bolstered confidence, drawing traditional asset managers into the crypto sphere and setting the stage for potential approval of an Ethereum ETF.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
