London, Thursday, May 2, 2024 – Canadian investors and financial organizations had increased their involvement in crypto – based systems compared to 2021, a survey conducted by KPMG and CAASA has revealed.
The survey was jointly conducted by KPMG and the Canadian Association of Alternative Assets and Strategies (CAASA) on the 2023 Institutional Adoption of Cryptoassets survey. According to KPMG, 65 participants were included in the survey, consisting of 31 institutional investors and 34 financial services organizations. Responses were collected from June 9, 2023, to December 1, 2023.1
According to the survey, the number of financial firms offering crypto products and services jumped by 22% from 2021 to 2023. This growth is mirrored by a 26% increase in institutional investors incorporating crypto into their portfolios during the same period.
Among financial services, cryptoasset trading, custody, clearing, and settlement services, and quantitative trading surged more than 8% in each sector compared with data from 2021.
The exposure of institutional investors surged within the sectors of direct cryptoassets, crypto-related public equities, and derivatives, remarking their adoption of the crypto eco-system.
It is revealed that cryptoasset products and services were provided by 22% more financial services organizations than in 2021. Meanwhile, more than 26% of institutional investors added cryptoassets to their portfolios in 2023, compared to 2021.
The report by KPMG said:
“Survey highlights
50 percent offered at least one type of cryptoasset service (up from 41 percent in 2021)
52 percent offered cryptoasset trading (*no comparable from 2021)
48 percent offered custody, clearing or settlement services (vs. 33 percent)
38 percent offered quantitative trading (vs. 11 percent)
14 percent offered wealth management or financial advice (vs. 42 percent)
24 percent issued ETFs or regulated products (vs. 25 percent)
Institutional investors
39 percent reported direct or indirect exposure to cryptoassets in 2023 (up from 31 percent in 2021)
75 percent owned cryptoassets directly (vs. 29 per cent)
50 percent had exposure through exchange-traded funds, close-ended trusts or other regulated products (unchanged)
58 percent had exposure to crypto-related public equities (vs. 36 percent)
25 percent invested as a limited partner in a venture capital or hedge fund (vs. 29 percent)
42 percent reported exposure through derivatives (vs. 14 percent)
“The 2023 Institutional Adoption of Cryptoassets survey was conducted by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA), targeting institutional investors and financial services organizations with operations in Canada. The survey yielded 65 responses (31 identified as institutional investors and 34 identified as financial services organizations). Institutional investors included: hedge funds, family offices, high-net-worth individuals, pension funds, endowments and foundations, private equity and venture capital firms.
“Of institutional investors, 48 per cent had $500 million or less in assets under management; 29 per cent had between $500 million to $2 billion; 13 per cent had between $2 billion to $20 billion; three per cent had between $20 billion to $50 billion; and six per cent had more than $50 billion in AUM. Financial services organizations included: asset management, capital markets, wealth management, financial advisors, custody, clearing, brokerage, insurance, commercial banking, and market infrastructure. Of financial services organizations, 56 per cent had $100 million or less in annual revenue; 29 per cent had $100 million to $1 billion; nine per cent had between $1 billion to $10 billion; and six per cent reported more than $10 billion in revenue. Responses were collected from June 9, 2023 to December 1, 2023.” 1
- KPMG.com: https://kpmg.com/ca/en/home/media/press-releases/2024/04/institutional-adoption-of-cryptoassets-jumped-in-2023[↩][↩]
