Crypto appetite among Hong Kong’s institutional buyers is low: new report

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Months of headwinds in the cryptocurrency ecosystem have begun to fuel a lack of interest among Hong Kong’s institutional investors.

According to a report by South China Morning Post (SCMP), based on an earlier report from Bitstamp involving 253 institutional investors in Hong Kong, up to 9% said they would reduce their exposure to the emerging asset class or stop investing in it altogether.

This figure is important because it is much higher than the 3% who had a similar view in the previous quarter.

James Quinn, managing partner of Hong Kong-based Q9 Capital, a coded investment platform for high-net-worth enterprises and individuals, said. Quinn added that “easy money” is not that easy right now. ”

It has been a rollercoaster journey of the wider cryptocurrency ecosystem since Russian forces invaded Ukraine.

The global economy turned into chaos and this was exacerbated by the collapse of Terra LUNA which led to the bankruptcy of a number of established crypto companies starting with Three Arrows Capital and later, Voyager Digital and Celsius Network among others.

While the survey still shows dwindling interest among investors, a large number of corporate buyers remain committed to investing in the industry. The Bitstamp survey showed that 29% of those surveyed still planned to allocate additional funds for digital currencies.

The few institutional investors who are still interested in injecting capital into space will do so provided the funds target highly innovative protocols in Web3.0 space. This model led the majority of new capital being pumped into today’s wider cryptocurrency world.

“The interest level remains high in increasing ecosystem construction, especially with regard to appropriate products and investment solutions,” Quinn said. “Institutions do not change course.”


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