A total of 65 organizations participated in the survey, comprising 31 companies managing funds with assets exceeding $500 million, and 34 providing financial services. Surprisingly, 39% of the respondents revealed that they have invested in cryptocurrencies. Out of these, 75% directly purchased crypto assets, while 50% opted for investment through regulated products such as ETFs and closed-end funds.
Alongside cryptocurrencies, stocks of companies associated with the cryptocurrency sector are in high demand, with 58% of crypto investors in possession of such securities. Additionally, 42% of respondents expressed their utilization of derivatives tied to digital assets. It is worth mentioning that only 31% of Canadian institutional investors had invested in crypto assets back in 2021.
Kunal Bhasin, partner at KPMG Canada, highlighted that institutional investors are looking towards alternative products to safeguard against inflation risks and preserve their savings given the increasing national debt in the United States. The growing maturity of the cryptocurrency market and the emergence of robust custody infrastructure have also contributed to the rising interest in digital assets.
Intriguingly, Canadian venture capital firms and hedge funds have taken a different approach, reducing their investments in crypto assets. Currently, only 25% of companies in this sector are investing in cryptocurrencies, compared to a figure of 29% in 2021.
Notably, Canada introduced new regulatory regulations for government-owned crypto investment funds in January this year.