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Canadian institutional investors are massively adopting cryptocurrencies

Tue 30 Apr 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Investissement

A survey conducted by a Canadian firm reveals that the interest of Canadian institutional investors in cryptocurrencies has seen a significant surge over the past two years. Estimated at 29% in 2021, the proportion of institutional investors exposed to cryptos in Canada has risen to 75% by 2023. The firm’s executives outline the elements that justify this trend.

Crypto

Canada, the Crypto Hub

From 2021 to 2023, Canada experienced a significant surge in institutional investor interest in cryptocurrencies. This is a key takeaway from the “Institutional Adoption of Cryptoassets” report published by the accounting firm KPMG Canada on April 24th.

According to the report, 39% of institutional investors were directly or indirectly exposed to cryptocurrencies in 2023, compared to 31% in 2021. Likewise, the number of institutional investors who allocated at least 10% of their portfolios to cryptos was 33.33% in 2023, versus 20% in 2021.

In the case of financial services companies, the survey revealed that 50% of them offered crypto services in 2023, up from 41% in 2021. Kunal Bhasin, partner and head of crypto at KPMG Canada, explains why the interest of institutions in crypto assets has jumped so significantly in 2023.

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Cryptos Establish Themselves as Hedging Assets in Canada

Kunal Bhasin attributes the increase in institutional interest in cryptos in Canada in 2023 to the rise in inflation rates and the soaring U.S. debt. He notes that Canadian institutions are seeking alternative assets capable of serving as a store of value and providing coverage against inflation.

The expert also specifies that this trend has been favored by a number of factors. He mentions, among others, the maturation of crypto markets and custody infrastructure, and the growth in the demand for crypto services following the catalyst created by BTC ETFs.

The emergence of Canada in the crypto ecosystem is not, however, completely independent of the regulatory parameter. Indeed, several crypto companies had to move their activities from the USA to Canada in 2023 to escape the regulatory pressure prevailing in the USA.

Even the renowned Coinbase extended its presence in Canada to benefit from the less stringent Canadian regulations compared to those of the USA. The maturation of the cryptocurrency market continues steadily and surely.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.