Citrea secured initial funding to bring the solution to market, which could allow for NFTs and blockchain games on Bitcoin.
Nickel Digital Asset Management, a cryptocurrency fund based in the United Kingdom, has released the results of a recent survey regarding institutions and their perceptions about crypto. In the research, the asset management firm explored how some of the firms across Europe, the UK, the USA, and the UAE feel about cryptocurrency.
According to the results, Bitcoin still poses security concerns to institutions. According to the research, which was digitally conducted earlier this year, the institutional investors have low confidence in the industry’s security.
Institutional hesitance to investing in cryptocurrency
The results from the research pinpoints key reasons why institutions might be hesitant to adopt Bitcoin and other cryptocurrencies
A significant 76% of the respondents cited concerns about how secure custodial services are as a key factor why they’re not investing yet in cryptocurrency. Another major obstacle for adoption is the lack of regulation in the industry. Without regulatory protocols, the institutions feel insecure about the safety in the process of investment. In addition to these concerns, institutions aren’t confident yet in the stability of cryptocurrency, with volatility as a worry. A lack of transparency and an absence of other creditable fund managers in the space are other key areas where institutions are concerned about the space.
According to the CEO and co-founder of Nickel Digital Asset Management Anatoly Crachilov, the institutional adoption of cryptocurrency is slow despite the market showing “very strong progress on that front.” On this, he noted that the increase of other institutions in the space might lead to greater infrastructure, increased confidence and more adoption.
“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.”