Bitcoin security still a concern for some institutional investors
July 21, 2021. Summarized by summa-bot.
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Regulations, custody security and a lack of reputable fund managers are keeping some institutions out of crypto.
United Kingdom-based crypto fund Nickel Digital Asset Management released a survey of 100 wealth managers and global institutional investors to find out the biggest investor concerns associated with crypto.
Conducted online from May to June 2021, the survey found low confidence among institutional investors in crypto security, with 76% of respondents citing concerns about the security of custodial services as one factor stopping them from investing in crypto.
Nickel Digital co-founder and CEO Anatoly Crachilov said that institutional concerns over crypto custody and security come despite the industry seeing “very strong progress on that front. ” Crachilov stated that crypto service providers have been increasingly deploying sophisticated cryptographic solutions, such as distributed keys and multi-party computation vaults, while traditional financial institutions have been also moving into such services.
Related: BNY Mellon joins State Street to service new crypto exchange