LHoFT survey: 43% of benchmark investors expect crypto to become priority within next two years

Key Takeaways

• Mainstream investors have likelihood of adding crypto assets to their portfolio, according to a survey.
• The poll also discussed challenges surrounding the adoption of cryptocurrencies, ranging from envrionment to regulation.
• Its respondents recognized crypto as a haven against inflaton.

LAGOS (CoinChapter.com) — Crypto assets hold the possibility of making into the portfolios of some of the world’s largest investors in coming years, a survey conducted by the Luxembourg House of Financial Technology (LHoFT) has found.

Almost 43% of 120 respondents returned a ‘yay’ to the question about whether cryptocurrencies like Bitcoin could become an influential asset class, such as a commodity, in the next two years. Meanwhile, 18% of the participants already considered investing in crypto markets a “strategic priority.”

Nonetheless, a substantial amount of respondents also expressed doubts about exploring digital assets.

39% of the survey participants indicated that they currently have no plan to adopt cryptocurrency. Meanwhile, less than 30% of respondents did not consider crypto assets relevant investments.

Crypto Assets Still Have Some Challenges To Overcome

In addition to revealing the growth of crypto assets, the LHoFT survey also highlighted three major challenges hindering crypto growth. Energy consumption, cryptocurrency risky nature, regulatory issues, and AML concerns.

Energy Consumption

Coming highest among challenges for participants in the LHoFT survey is the amount of energy crypto assets consume. 31% of respondents indicated that the environmental impact of crypto mining is the reason for not adopting digital currencies. This percentage of participants argues that the amount of energy consumed by crypto mining makes it a bad investment.

High Risk Of Digital Assets

Secondly, 25% of respondents indicated that they still regard crypto assets as a risky investment. These participants explained that the volatile nature and the fact that crypto-assets aren’t back by the government make it difficult to invest.

Regulatory concerns

30% of respondents also revealed that they wouldn’t adopt digital assets due to industry regulatory issues. In detail, crypto businesses do not currently have full government support and, therefore, have hindered many people from investing in crypto.

LHoFT survey Highlights Other Attractive features Crypto Assets Possesses

Respondents in the survey also named three additional features that they find attractive about crypto assets.

More than 75% of the LHoFT survey participants revealed that crypto-assets diversification benefits were the most favorable thing.

Moreover, the survey respondents also discussed crypto’s ability to hedge against inflation. One attribute that has made cryptocurrencies so appealing to investors is the idea that they’re more resistant to inflation than fiat currencies, like the U.S. dollar.

About a quarter of the survey respondents also disclosed that crypto-assets risk-adjusted return potential was another favorable feature of digital assets.