According to a recent study conducted by SIX, members of the buy-side community worldwide have a positive attitude towards digital assets and ESG investments. Professional investors viewed a safer trading environment as the main driver for increased confidence in the crypto space.
In the "Cornerstones for Growth" study, SIX, the operator of the Swiss stock exchange, surveyed 300 portfolio managers, asset managers, and hedge fund managers in Europe, Asia, and the United States regarding digital assets and ESG. The survey revealed a strong demand for comprehensive institutional expertise, particularly in the area of digital assets.
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Increasing interest in crypto assets
According to the SIX survey, international buy-side firms are at a crucial turning point in their adoption of digital assets. The study shows that nearly 70% of asset managers plan to include crypto assets in their portfolios within the next 12 months. In Asia, this number is significantly higher at 83%. Currently, 11% of the respondents hold digital assets, with the United States leading at 29%.
To further drive adoption among professional investors, the respondents cited the lack of availability of institutional platforms and regulated marketplaces as one of the biggest barriers. The SIX study identified technological improvements such as the standardization of smart contracts as crucial drivers. Interestingly, the respondents did not attribute significant importance to uniform policies beyond national borders.
Lack of professionalism among infrastructure providers?
Additional questions regarding crypto trading platforms shed light on the main issues with conventional exchanges. Transparency was identified as a critical factor by 42% of the respondents. Furthermore, 32% emphasized that regulated crypto exchanges should contribute to increasing the growth potential of the target market. Ultimately, trading platforms are capable of providing transparency, security, and liquidity, thereby strengthening trust in the industry. Approximately one-fifth (21%) attributed the most important role to mitigating counterparty risk.
It should be emphasized once again that it is not a lack of trust in the assets themselves that has slowed down or hindered engagement in this market. It is the need for institutional platforms that have meaningful governance, robust risk management, and regulatory oversight. We believe that in addition to experienced market infrastructure providers, regulated and traditional trading and custody venues must play a key role in the development of the [...] market for digital assets." - David Newns, CEO SIX Digital Exchange (SDX)
