Barnes & Thornburg: US private investors predict a surge in crypto investments

What’s new? Private investors from the United States expect a sharp increase in crypto investments, more than half of them intend to include digital assets in their portfolios. Thus, a law firm Barnes & Thornburg survey revealed that 84% of respondents believe private investment in cryptocurrency will grow over the next 12 months, with 59% saying they are more likely to invest in crypto funds than a year ago.

Material by Cointelegraph

What else is known? The survey included 138 limited partners, general partners, and service providers from private equity firms, venture capital firms, hedge funds, and investment banking firms across a variety of industries in the United States.

The report notes that respondents’ attitudes toward the crypto sector have changed significantly over the year: at the time, they stated that the current state of the cryptocurrency market had a significant negative impact on their organizations.

The main reason for the change is the launch of spot cryptocurrency exchange-traded funds (ETFs) by major investment companies such as BlackRock and Fidelity. On January 11, trading in units of spot BTC ETFs began on US stock exchanges, and on July 23, securities regulator SEC also allowed spot ETH ETFs to enter the market.

BlackRock’s ETH ETF has entered the top 15 in terms of inflows among new funds

The product was launched a week ago and has already raised over $600 million

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Other reasons for the improvement in investor attitudes toward cryptocurrency include the regulatory clarity brought by the January debut of crypto ETFs and the subsequent market recovery.

Among the 26% of investors who said they are less likely to invest in crypto funds over the next year, the main reasons are crypto market volatility (46%), fraud (43%), and the collapse of crypto platforms (43%).

“A year and a half away from the FTX collapse, we’ve seen significant recoveries in Bitcoin and other cryptocurrencies. The SEC’s approval of Bitcoin ETFs is a big deal for the industry and may also increase the willingness of allocators to make investments in private crypto funds and other nonregulated products,” said Barnes & Thornburg partner Scott Baels.