• Bank of New York Mellon (BNY Mellon) executive Michael Demissie has revealed that investors are still interested in the digital asset space despite the bear market.
• A survey conducted by the bank revealed that institutional interest and investor demand for crypto assets were rising.
• Demissie believes cryptocurrencies are here to stay as investors have not lost interest in the nascent industry, despite unfavorable events that occurred last year.
Investors Interested in Cryptocurrency Despite Bear Market
Bank of New York Mellon (BNY Mellon) executive Michael Demissie has revealed that investors are still interested in the digital asset space despite the bear market. A survey conducted by BNY Mellon showed that institutional interest and investor demand for crypto assets were rising.
Investor Confidence Remains High
Demissie believes cryptocurrencies are here to stay as investors have not lost interest in the nascent industry, despite unfavorable events that occurred last year. Out of 271 institutional investors surveyed, 91% said they were interested in investing in tokenized products, 88% said they were comfortable with digital representation of cash through blockchain-based technology, and 86% of respondents said they saw a future for digital currencies.
Applications Growing
The survey also revealed that 80% of respondents believed applications related to digital assets would increase over time. Additionally, 73% felt comfortable with custodial solutions offered by financial institutions such as BNY Mellon.
Regulation a Concern But Not an Obstacle
When asked about their concerns regarding regulations on digital assets, 77% noted regulatory compliance was one of their main worries when considering investing or trading these products. Despite this concern, 65% said they would be willing to explore opportunities within this sector given proper regulation.
Conclusion
Overall, it appears there is still strong investor confidence in cryptocurrency markets despite current bearish trends and worries about regulations. Financial firms such as BNY Mellon are taking steps towards offering custodial services which could further encourage institutional adoption of these technologies.