According to a survey of 150 endowments, 94% of them have invested in crypto-related initiatives in the past 12 months.
Based on research performed by Global Custodian and The Trade Crypto, 94% of endowments surveyed have invested in crypto-related initiatives. Within their research of 150 endowments, only 7% said they are anticipating a decrease in their allocations over the next 12 months. Just like other institutions, however, their biggest concerns are lack of robust market infrastructure, volatility, liquidity, and regulatory concerns.
“It’s fascinating to see that despite the widely-publicized concerns around regulation, custody, and liquidity, endowments have been factoring crypto-related investments into their allocations, and very few are showing intentions of stepping away. All the talk over the past 18 months has been around when institutional investors will begin participating in cryptocurrency investments, but it turns out they had already arrived, in the form of endowment funds.” -Jonathan Watkins, Managing Editor, Global Custodian, and The Trade
Of all of the funds surveyed, 54% said that their investments were directly into individual crypto assets, while the remaining 46% gained exposure through the use of funds instead of direct investment. In addition, over the next 12 months, about 50% said that they expected to increase their crypto investments while 45% will hold steady.
“All the talk over the past 18 months has been around when institutional investors will begin participating in cryptocurrency investments, but it turns out they had already arrived, in the form of endowment funds.” -Jonathan Watkins
Read the full report here.