Sygnum, a Swiss digital bank, says that 60% of institutional investors have bet on cryptocurrency.

Sygnum Bank found that institutional investors are prioritizing web3 assets in the face of global economic uncertainty.

Investors with high net worth are increasingly confident in the long-term prospects of crypto, due to portfolio diversification and macroeconomic hedge. According to an recent survey A survey of 400+ respondents from 27 nations, conducted by Swiss-based digital bank Sygnum in 2017, revealed that the vast majority are interested in crypto’s potential to grow over time.

This report attributes confidence in the market to the expectation of greater returns and the new crypto “megatrend,” The interest for space is high.

According to the report, diversification continues to be a major theme. Investors continue to seek ways to protect themselves against macroeconomic risk, such as fears about recessions and geopolitical tensions. BitcoinBTCMany view this as a negative. “digital gold” Due to its scarcity it has again become popular amongst investors who are looking for assets that offer a safe haven, according to the report.

Short-term, investors are confident but the outlook is mixed. The Swiss bank reports that more than 50 percent of investors will be neutral in Q4 2020.

“Asset volatility is now the biggest challenge to crypto investing, followed by security and custody concerns and the lack of regulatory clarity.”

Sygnum

Sygnum states that while some companies are waiting for confirmation on a sustained growth in the market, others remain cautious because of external geopolitical influences.

Investors are currently primarily attracted by layer-1 protocols, and the web3 infrastructure. This is due to Bitcoin and Ethereum’s strong presence.ETHSygnum admits that crypto exchange-traded products also drive the dynamic, with many investors seeking ownership in crypto assets rather than indirect exposure. Sygnum acknowledges, however, that exchange-traded crypto products are also driving the dynamics, as many investors prefer direct exposure to crypto assets over indirect exposure.