Canada-based institutional investors significantly increased their crypto exposure last year compared to the last bull run, a survey from accounting firm KPMG has revealed.
Nearly 40% of institutional investors reported having direct or indirect exposure to crypto assets in 2023 — up from 31% in KPMG’s 2021 study, the company according to an April 24 report.
KPMG received 65 responses, 31 of which identified as institutional investors with most managing more than $500 million in assets, while the remaining 34 were financial services organizations.
The survey found that one-third of the institutional investors have allocated 10% or more of their portfolios to crypto assets — up from a fifth two years ago.
Kunal Bhasin, a partner and leader at KPMG Canada’s Digital Assets practice said it “appears” the firms are looking to invest in alternative asset classes that act as a debasement hedge and a reliable store of value in the face of increasing inflation and rising debt in the United States.
A large majority of investors cited a maturing market and improved custody infrastructure as key reasons behind investing in crypto assets while increased client demand for crypto asset services was cited as a key factor for financial firms expanding their offerings.
