This paper examines how institutional investors are gaining exposure to cryptocurrencies through direct holdings, trading strategies, and blockchain investments. Adoption remains early, particularly among larger institutions, but improving market liquidity and infrastructure are widening access, while custody, regulation, volatility, and valuation concerns remain meaningful barriers.
The Evolution of Institutional Investors’ Exposure to Cryptocurrencies and Blockchain Technologies
Bridgewater
Ross Tan, Karen Karniol-Tambour
Article
1 Pages
Key Takeaways
Institutional Holdings Growing: Institutional level players held roughly 1 million bitcoin, representing about 5% of issued supply and approximately $42 billion at then current prices.
Family Offices Lead: About 50% of US family offices held digital assets, compared with roughly 30% of family offices in Europe and Asia.
Crypto Funding Surges: : Venture funding for cryptocurrency and blockchain companies more than quadrupled to over $25 billion in 2021.