Institutional Investors Expect Major Correction in Crypto Market Next Year

Natixis Investment Managers published the results of a global institutional investor survey Wednesday. The company polled 500 institutional investors who collectively manage $13.2 trillion in assets for public and private pensions, insurance, foundations, endowments, and sovereign wealth funds worldwide. Nearly 100 institutional investors in the U.S. who manage $1.3 trillion in assets were included.

Institutional investors were asked about which markets will see a major correction next year. While “institutions see the potential for corrections in a range of asset classes and sectors,” the survey findings state:

They think the top contender for a major correction next year will be cryptocurrencies.

Natixis detailed that cryptocurrency tops the list of correction concerns with more than half of institutions surveyed calling for a correction. Next on the list are interest-rate-sensitive bonds (45%), stocks (41%), and technology (39%).

Despite predicting a major correction for the crypto market, institutional investors are increasingly warming up to the asset class, Natixis noted, stating:

Even as crypto is the top contender for correction, institutions are beginning to warm to digital currency.