According to a study by KPMG, almost 40% of Canadian institutional investors have direct or indirect exposure to crypto assets, an increase from the last bubble in 2021.
Increased exposure to crypto
In 2023, KPMG revealed that 39% of Canadian institutional investors had exposure to crypto, representing an increase from the last bubble in 2021. At that time, only 31% of investors had crypto exposure, indicating a significant increase in institutional interest in cryptocurrencies.
Reasons for the increase
The reasons for this increase are mainly custody infrastructure and market maturation, cited by more than half of investors. In addition, increased customer demand for crypto services was cited as a key factor for financial firms expanding their offerings.
The impact of ETFs
In February 2021, Canada became the first country to approve ETFs on Bitcoin (BTC) and Ethereum (ETH), stimulating growing interest in these assets among local investors. The latest approval of Bitcoin ETFs in the U.S. has been described as a “milestone moment” for market participants in Canada.
The impact of ETFs in Canada
Half of institutional investors have crypto assets via ETFs, closed trusts or other regulated products. A further 58% have crypto assets via the stock market, such as Galaxy Digital on the Toronto exchange. This breakdown shows a diversification of the means by which institutional investors are accessing cryptocurrencies, reflecting a growing interest in these assets across various regulated financial sectors.
