According to a new study published by the Block, investors and managers of traditional assets do not invest in the cryptocurrency industry due to regulatory uncertainty.
Analysts surveyed representatives of 38 firms operating primarily in the digital asset sector. Market makers, exchanges, custodial service providers, and traders took part in the survey. More than half of respondents named regulatory uncertainty as one of the main reasons for refusing to invest in cryptocurrencies.
According to the Director and co-founder of B2 C2 max Bunin (Max Boonen), it is not so easy for large traditional funds to change their policy and start investing in bitcoin. They have a clearly defined policy with rules that define the assets available for investment.
Respondents also noted that the infrastructure is not sufficiently developed and the overall market capitalization is too small for traditional companies to enter the cryptocurrency sector. These reasons were given by 47% and 32% of respondents, respectively.
In early may, the consulting company PwC reported that the volume of assets under management (AUM) of cryptocurrency hedge funds for 2019 doubled and reached $2 billion.