Institutions Losing Interest in Crypto in Hong Kong!

cryptocurrencies frequent developments regarding in Hong Kong A public survey was conducted.

With the completion of the research, very interesting results emerged.

According to the news published in the South China Morning Post, institutional investors in Hong Kong are now a little more distant towards cryptocurrencies. The main source of the research is one of the world’s largest cryptocurrency exchanges. Bitstamp.

According to Bitstamp’s survey of Hong Kong investors, institutional investors’ interest in crypto is declining. About 10% of institutions plan to withdraw from the cryptocurrency markets in the near future. The rate of institutional investors who state that they will invest in cryptocurrencies is only 33%.

Analysts think that institutional investors are looking for new alternatives due to the decline in high profitability in cryptocurrencies.

Cryptocurrencies Recommended for Small Investors

There are not only negative data in the research. 70% of Hong Kong-based institutions said they recommend crypto to their clients. Institutions still see cryptocurrencies as an opportunity for small investors.

Institutional investors generally do not prefer to invest in very risky assets. The fund size they manage is astronomical compared to a normal investor. Since cryptocurrencies are classified as a high-risk asset, institutions may want to abandon this product as soon as profitability decreases.

In particular, the interest of cryptocurrency exchanges in the Hong Kong market continues to increase. about 2 weeks ago Gate.io exchange had obtained operating license from Hong Kong authorities.