Bitcoin's rising valuation fails to entice institutional investors into cryptocurrency market

Written by Adam Cadle

25/08/2020

A rising valuation in Bitcoin is not enough to entice some institutional investors into the cryptocurrency market, as many have concerns regarding the infrastructure of this sector, new research has shown.

According to Evertas, 88% are worried about the lack of adequate insurance cover for these assets, and 92% are concerned about the quality of the custodial services available.

Sixty per cent of intitutional investors who collectively manager $78.4bn of assets think Bitcoin will be worth over $12,000 by the end of this year, and four out of ten (40%) expect one Bitcoin to be valued at over $15,000 by then. Just 24% think it will be worth $10,000 or less.

In December 2017, Bitcoin nearly hit $20,000, and 22% of institutional investors think it could reach this figure next year, with 28% anticipating this will happen in 2022.

Evertas recently received its licence from the Bermuda Monetary Authority to start operating from the jurisdiction. It operates as a ‘Class 3A’ insurer.

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