According to recent statistics, the security of bitcoin custodial services is still one of the significant barriers stopping institutional investors. Therefore, it is stopping them from purchasing cryptocurrencies for the first time.
The Survey Report
Nickel Digital Asset Management, a crypto fund located in the United Kingdom, conducted a poll of 100 wealth managers and worldwide institutional investors. They further did this to determine the top investor worries about crypto.
Respondents from the United States, France, Germany, the United Arab Emirates, and the United Kingdom are included in the poll. Moreover, the combined assets are about $275 billion under administration.
The Survey Results
Between May to June 2021, the online-conducted study revealed that institutional investors had little faith in crypto security. Therefore, 76% citing worries about the safety of custodial services as one factor preventing them from investing in crypto.
The regulatory environment was also mentioned as a critical barrier by respondents. Other major issues were a perceived lack of credible fund managers offering crypto investments and a lack of transparency and volatility.
Anatoly Crachilov’s Statements
According to Anatoly Crachilov, co-founder and CEO of Nickel Digital, institutional worries about crypto custody and security exist despite the industry’s “quite significant development on that front.” Crypto service providers have been progressively adopting advanced cryptographic solutions, such as distributed keys and multi-party computation vaults. At the same time, traditional financial institutions have also begun to use such services.
Carchilove further said:
“We are now seeing Fidelity, BNY Mellon, and State Street entering the market, thus further reinforcing market infrastructure. All of this increases the confidence levels in the sector and lead to ever-growing allocations to this fast-developing asset class.”
Australiant Security Exchange Warning
The latest poll comes after the Australian Securities Exchange warning about custodial services on centralised cryptocurrency exchanges. Therefore, alerting investors about cybersecurity concerns such as hacking.
