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Source: KPMV
Canadian institutional investors and financial service organizations returned to the field of encrypted assets in 2023. Because the industry recovered from the turbulent period, the market rebounded, regulatory transparency increased, and digital asset innovation increased.
Based on KPMG (KPMG) conducted two years of survey of two years of one -year survey in Canada and Canada’s Alternative Assets and Strategy Association (CAASA),Last year, the financial service institutions that provided customers with crypto asset products and services increased by 22%compared with 2021. Last year, an institutional investor in the investment portfolio was incorporated into its investment portfolio by 26%over 2021.The survey collected feedback from financial service organizations and institutional investors operating in Canada.
Half of the financial service industry interviewees said that their organization is actively providing customers with at least one type of crypto asset products or services, which is higher than 41%in 2021.Among institutional investors, nearly four -tenths (39%) reports directly or indirectly invest in encryption assets, higher than 31%in 2021.
“The last survey was in 2021, which was a strong year for encrypted assets. The next year is a turbulent year. The main encrypted asset trading companies have fraud and closure. HoweverPurification, “Kunal Bhasin, a partner and co -person in charge of KPMG Canada’s digital asset business.
“The rise in US debt plus inflation may provide a catalyst for the rise in cryptocurrencies in 2023. Investors seem to be looking for alternative asset categories to storage as a depreciation hedge and reliable value. Our survey results show that crypto assets are becoming more and more and moreMulti -place has received attention, as an alternative asset category that can invest as an institutional investor and financial service organizations in Canada.Mr. Bhasin added.
Kareem Sadek, the head of emerging technology risk and co -head of the KPMG digital asset business, added:“Canada played a leading role in creating a regulatory environment that supports the innovation of crypto assets. From approving the first bitcoin and the Ethereum Exchange Trading Fund to allowing complex strategies that involve derivatives and Ethereum pledge, as well as crypto asset pricesThe rise may be the reason why institutional investors are becoming more and more attracted to the encryption field. “
Key points for survey
Financial services:
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50% offer at least one type of crypto asset service (41% higher than 2021);
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52% provides encrypted asset transactions (*2021 did not compare data);
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48% offer hosting, liquidation or settlement services (compared to 33% in 2021);
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38% provides quantitative transactions (compared to 11% in 2021);
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14% provide wealth management or financial proposal (compared to 42% in 2021);
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24% issued ETF or regulated products (25% in the same period last year)
Institutional investor:
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39% of the respondents said that they had directly or indirectly exposed to crypto assets in 2023 (more than 31% higher than 2021);
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75% of people directly owns crypto assets (compared to 29% compared to 2021);
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50% invested (unchanged) through exchange trading funds, closed trusts or other regulatory products;
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58% of people have come into contact with cryptocurrency -related stocks (compared to 36% compared to 2021);
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25% invested as a limited partner at a venture capital or hedge fund (compared to 29% in 2021);
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42% of the respondents reported that risk exposure was performed through derivatives (compared to 14% compared to 2021).
Financial services
Financial service organizations provide customers with a series of encrypted asset investment services. Each interviewee provides an average of two to three services, while the average of one to two services in 2021.Customers ‘demand for encrypted asset services is an important driving factor. Eight of the interviewees’ demand for encrypted asset services is an important driving factor.Ten financial services interviewees regard them as the main factor in expanding crypto asset services, which increases from half of 2021 in 2021.
The three most common services provided by financial service organizations include: encrypted asset transactions; custody, liquidation and settlement services; quantitative transactions.The uncommon services provided include financial consulting and wealth management services, equity and debt capital market transactions of crypto asset companies, and commercial banking services in crypto asset organizations.
“Traditional financial institutions are increasingly aware of the need to provide encrypted asset services to meet customer needs. Even so, large Canadian financial institutions still need to be more suitable for unique challenges related to anti -money laundering and financial crimes brought by crypto assets.Provide more commercial bank services for cryptocurrency companies, “Mr. Sadek said.
Investment in encryption asset investment in 2023
Compared with two years ago, institutional investors are increasing investment in crypto assets and adopting more investment strategies.One -third of the people said they had allocated 10% or more investment portfolios to encryption assets, and the figures were one -fifth two years ago.
Investors are using a variety of strategies to obtain investment in encrypted assets, including direct ownership and regulatory products such as ETF, stocks and derivatives.
More than two -thirds (67%) investors regard the mature market and custody infrastructure as the key reason for its first investment in encrypted assets——In 14%higher than 2021.More than half of (58%) investors also mentioned strong market performance -increased from 21% in 2021.The price of Bitcoin rose by 150%in 2023, and has risen by 50%so far since 2024.
“The critical moment of encrypted assets appeared in January 2024, when the US Securities and Exchange Commission (SEC) approved the spot Bitcoin ETF. This is a milestone for many market participants.”Said the traditional asset management company”, Mr. Sadek said, and added to sayEthereum ETF is expected to be approved in 2024.
Mr. Bhasin saidHe expects more financial institutions and investors to increase investment in crypto assets in 2024.Before investing, he suggested that they:
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Seeking education on the encryption asset industry (seminars, meetings, etc.);
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Formulate strategic vision and roadmap for encrypted asset investment or providing encrypted asset services;
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Develop concept verification and solution to achieve production -level products;
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Study, find and evaluate a series of service providers to help the implementation of Canadian Assets strategies and ensure that they meet operations and regulatory requirements;
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Establish internal policies and control (such as anti -fraud control) to meet management, industry and regulatory requirements.
