A KPMG survey reveals a notable increase in institutional interest in cryptocurrencies in Canada, with 39% of investors now holding crypto assets. This trend is driven by economic uncertainties and a more regulated environment.
Institutional interest in cryptocurrencies is on the rise in Canada, with 39% of institutional investors now reporting direct or indirect exposure to crypto assets, up from 31% in 2021. A survey by KPMG in Canada and CAASA highlights that 50% of financial services respondents are offering crypto asset services in 2023, a 9% increase from the previous year.
This growth is driven by the recovering crypto market, enhanced regulatory clarity, and innovations in digital assets. KPMG's Digital Assets practice co-leader Kunal Bhasin notes that crypto assets are increasingly seen as investible alternative assets, particularly in light of the rise in US debt and Dollar inflation, prompting investors to view crypto as a hedge and stable store of value.
According to the survey, 75% of institutional investors now hold crypto assets directly, while 50% have exposure via exchange-traded funds or regulated products. Additionally, 58% of investors have ventured into crypto-related public equities, reflecting a broadening acceptance and adoption of digital assets in the financial sector.
