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According to a survey conducted by accounting firm KPMG, institutional investors based in Canada significantly increased their exposure to crypto assets last year compared to the previous bull run.
In 2023, nearly 40% of institutional investors reported<a href="https://thecoinrise.com/canadas-cppi-halts-its-research-plans-in-crypto-as-investment-option/" rel="noopener noreferrer nofollow"> having direct or indirect exposure to crypto assets</a>, up from 31% in KPMG’s 2021 study.
<h2 id="span-style-font-weight-400-canada-and-crypto-adoption-span">Canada and Crypto Adoption</h2>
The<a href="https://kpmg.com/ca/en/home/media/press-releases/2024/04/institutional-adoption-of-cryptoassets-jumped-in-2023.html" rel="noopener noreferrer nofollow"> survey</a> received 65 responses, with 31 identifying as institutional investors managing more than $500 million in assets, and the remaining 34 representing<a href="https://thecoinrise.com/bank-of-canada-states-the-potential-of-stablecoins/" rel="noopener noreferrer nofollow"> financial services organizations operating</a> in Canada.
One-third of institutional investors have allocated 10% or more of their portfolios to crypto assets, an increase from a fifth two years ago.
Kunal Bhasin, a partner and leader at KPMG Canada’s Digital Assets practice, noted that firms in Canada are increasingly interested in investing in alternative asset classes that serve as a hedge against debasement and a reliable store of value amidst rising inflation and debt in the United States.
<h3 id="span-style-font-weight-400-canada-is-a-maturing-market-span">Canada is a Maturing Market</h3>
The survey revealed that a majority of investors in Canada<a href="https://thecoinrise.com/coinbase-taps-registration-license-to-operate-its-business-in-canada/" rel="noopener noreferrer nofollow"> cited a maturing market</a> and improved custody infrastructure as key reasons for investing in crypto assets. Additionally, increased client demand for crypto asset services was a significant factor in financial firms expanding their offerings.
The<a href="https://thecoinrise.com/us-spot-bitcoin-etfs-see-three-days-consistent-inflows/" rel="noopener noreferrer nofollow"> approval of spot Bitcoin</a> and Ethereum exchange-traded funds (ETFs) in Canada in February 2021 played a pivotal role in attracting local investors to the asset class.&nbsp;
<h2 id="span-style-font-weight-400-approval-of-spot-btc-etf-span">Approval of Spot BTC ETF</h2>
According to Kareem Sadek, another executive at KPMG’s Digital Assets practice, the recent approval of spot Bitcoin ETFs in the United States was a “milestone moment” for many market participants in Canada.
Half of the institutional investors surveyed have crypto asset exposure through Canadian ETFs, closed-ended trusts, or other regulated products. Furthermore, 58% have exposure through the stock market, such as Galaxy Digital on the Toronto Stock Exchange, which is up from 36% in 2021.
The survey also showed that more institutional investors are gaining exposure through derivatives markets, now at 42% compared to 14% in 2021. However, exposure through venture capital or hedge fund firms fell to 25% from 29% in 2021.
The post <a href="https://thecoinrise.com/canada-sees-uptick-in-institutional-investors-exposed-to-crypto/" rel="noopener noreferrer nofollow">Canada Sees Uptick in Institutional Investors Exposed to Crypto</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Canada Sees Uptick in Institutional Investors Exposed to Crypto

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