In their report, researchers state that in 2023, 39% of Canadian institutions invested in cryptocurrencies, marking an 8% increase from 2021. The survey also revealed that half of the financial services companies now offer access to digital assets, compared to 41% in 2021.
“Canada has been at the forefront of creating a regulatory framework supportive of cryptocurrencies. The introduction of the first Bitcoin and Ether ETFs, along with the permission for complex strategies like derivatives trading and Ether staking, has been pivotal. Coupled with the escalating prices of crypto assets, these developments are driving the growing interest among institutional investors in digital currencies,” states Kareem Sadek, Head of Emerging Technology Risk at KPMG.
Kunal Bhasin, Partner and Digital Assets Lead at KPMG, echoes his colleague’s sentiment, emphasizing that cryptocurrencies are attracting institutional investors as a hedge against inflation and the depreciation of traditional currencies, particularly amidst the mounting US national debt.
“Our surveys indicate that crypto assets are increasingly being recognized as an alternative asset class for institutional investors in Canada,” remarks Bhasin.
Last year, KPMG and Chainalysis pledged support to Canadian authorities in their efforts to combat the rising incidence of crypto-related crimes.