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- Crypto market is the top contender for significant corrections in 2022, as per several institutional investors
- Natixis recent survey of more than 500 institutional investors showed more than half of institutions surveyed called for a correction
- Although institutional investors are bearish in crypto, they have continued to pile up their holdings
Crypto market has seen notable growth since the beginning of this year. The growing scenario and bullish rallies for these assets came with a spark generated amid the global COVID-19 pandemic. However, although the market witnessed notable growth, prices were highly volatile. Following some recent price action actions, it has been observed that some of the institutional players in the market are expecting significant corrections in the next year.
Natixis, an Investment Manager, has recently released a survey report. According to its study, several institutional firms see cryptocurrencies as the top contender for significant corrections. Still, those players in the ecosystem are increasingly warming up to the asset class.
Natixis surveyed more than 500 institutional investors
Last week, Natixis Investments Manager shared a global institutional investors survey report. According to the report, the firm polled 500 institutional players who are collectively managing more than $13 trillion in assets. These assets are for public and private pensions, insurance, foundations, endowments, and sovereign wealth funds worldwide.
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About 100 institutional investors were from the United States who manage nearly $1.3 trillion in assets among the institutional participants.
Crypto market would face major corrections
In the survey conducted by Natixis, the institutional players were asked regarding which market will see a significant correction by next year. Notably, these firms see the potential for corrections in a range of asset classes and sectors. Following the data, the survey noted that the institutions that see the top contender for a significant correction next year would be the crypto market.
Further, Natixis detailed that digital assets top the list of correction concerns. According to the study, more than half of the institutions surveyed called for a correction. Besides virtual currencies, interest-rate-sensitive bonds, stocks, and technology were also on the list.
Institutional investors continue to stack digital assets
Although the institutional players predict significant corrections by the following year, they have continued to amass digital assets. According to Natixis, even as the crypto market is the top contender for correction, firms continue to acquire more assets. Moreover, the study noted that four in ten firms are considering digital assets a legitimate investment option. Notably, of the 28% of firms investing in digital currencies, 90% plans to maintain or increase their allocations.
On the other hand, 87% of the respondents deem that central banks should eventually regulate cryptocurrencies.
