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The adoption of cryptocurrency by institutional investors and high net worth individuals has declined as a result of the down market of 2022. But before the start of the bear market, 2021 saw the of millionaires and institutional investors putting capital on the asset class.
However, despite a hostile market environment in the last half of 2022, institutional investors and individuals continue to have confidence in digital assets.
According to recent news, big investors are returning to bitcoin as a result of the recent market rally. This is evident as majority of millionaires have asked their financial advisors for guidance in investing in digital assets.
This is obvious, as the majority of millionaires have sought advice from their financial advisers to invest in digital assets. On Crypto
DeVere Group, a financial consultancy company, recently surveyed individuals with 1 million to 5 million euros of investable assets and they found out that 8 out of 10 high net worth individuals have asked about how to invest in virtual assets. It's surprising, given that 2022 was marked by some of the largest bankruptcies and collapses in the sector.
Major breakdowns of institutions like Three Arrows Capital and FTX have shaken the market and the trust of institutional investors and HNW individuals. According to nigel green, the president of the devere group, even the apparently conservative group wants to either increase exposure or include Bitcoin in their wallet.
Image: Cryptocurrency News
Image: Cryptocurrency NewsRelated Reading: Top five IAs Cryptos Worth Invest In This February.
With existing digital asset ETFs for investors, we could see greater acceptance of digital currencies within the traditional financial space. However, this may be already happening as major financial entities also dive deep in crypto with their own digital asset investment vehicles.
What does this have to do with Bitcoin?
The main argument against investing in crypto is its volatility and being unregulated asset class that exists outside of the law. This may seem a big contention, but the world of finance has evolved with countries even regulating digital assets, giving investors a sense of security.
The financial world has evolved with countries that even regulate digital assets, giving investors a feeling of security. With regulation coming around the corner, it may boost investor confidence and trust in the world of crypto.
Crypto total market cap at $992 billion on the daily chart | Chart: TradingView.comAs 2023 moves forward, we should expect bigger capital inflows to the crypto industry as acceptance increases. With the growing popularity of top assets like Bitcoin, this reality is not far from happening.
With the increasing popularity of the best assets such as Bitcoin, this reality is not far from occurring.
Joseph Edwards, investment adviser at Enigma Securities, shares his thoughts on this:
“For the most part, people are more confident than they were a month ago in crypto.”
Meanwhile, as determined by CoinShares Asset Manager, The past seven days have been marked by the strongest weekly increase in inflows of investment products in digital assets since July last year, over 117 million dollars.
Joseph Edwards, an investment counsellor with Enigma Securities, shares his thoughts on the subject: "For the most part, people are more confident than they were a month ago in cryptography."
This may suggest that bitcoin and other digital currencies are gaining ground in the wider marketplace, according to analysts.
