Year to date, the value of Bitcoin has increased by around 64% and one Bitcoin is now worth around $11,500 (1), and new research (2) reveals institutional investors expect further rises in the valuation of the cryptocurrency this year.
Evertas, the world’s first crypto asset insurance company, which focuses on covering institutional holders of crypto assets including exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals, surveyed institutional investors who collectively manage $78.4 billion of assets. It found 60% think Bitcoin will be worth over $12,000 by the end of this year, and four out of ten (40%) expect one Bitcoin to be valued at over $15,000 by then. Only 24% think it will be worth $10,000 or less.
In December 2017, Bitcoin nearly hit $20,000, and 22% of institutional investors think it could reach this figure next year, with 28% anticipating this will happen in 2022.
One key reason for the recent rise in the value of Bitcoin is its recent ‘halving’ (which happened in May), as the two previous times this happened led to rises in the valuation of the cryptocurrency. This helps explain why one in four institutional investors (24%) think the recent halving will lead to a dramatic increase in the amount invested in Bitcoin, and 68% think it will lead to a slight increase.
J. Gdanski, CEO and Founder of Evertas, said: “Institutional investors are clearly optimistic about the future valuation of Bitcoin, and no doubt their views here have been fuelled by strong growth in the cryptocurrency during July and August. However, a rising valuation is not enough to entice some institutional investors into the cryptocurrency market, as many have concerns regarding the infrastructure of this sector. For example, 88% are worried about the lack of adequate insurance cover for these assets, and 92% are concerned about the quality of the custodial services available.
“The crypto asset market must address these issues if they are really going to capitalise in full on the growing interest institutional investors are showing in these assets.”
Earlier this year, Evertas completed a Seed Stage funding round and raised $2.8 million. The funding round was led by Morgan Creek, who was joined by Plug n Play, Kailash Ventures, RenGen, Vy Capital, and Wavemaker Genesis. Mark Yusko, Founder, CEO, and Chief Investment Officer of Morgan Creek Capital Management & Managing Partner of Morgan Creek Digital Assets, joined Evertas’ Board of Directors.
It also received its license from the Bermuda Monetary Authority to start operating from the jurisdiction. It operates as a ‘Class 3A’ insurer. (3)