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Crypto Security Is Biggest Concern for Institutional Investors

  • Volatility, regulation are less important factors than custody
  • Nickel Digital survey covers investors with $108 billion AUM

Security concern, more so than the volatility and regulations, is what holds institutional investors back from investing in crypto and digital assets, a survey by Europe’s largest regulated digital-asset hedge fund manager showed.

The survey of institutional investors and wealth managers, who collectively manage around $108.4 billion, showed 79% see asset custody as the key consideration whether to invest in this space. Custodians provide solutions for investors who want to securely store and protect their crypto assets. The report was commissioned by Nickel Digital Asset Management, and involved interviews with 50 wealth managers and 50 institutional investors across the U.S., the U.K., Germany, France and the United Arab Emirates.