A new survey of institutional investors conducted by the Global Blockchain Business Council (GBBC) and shared via press release yesterday revealed 19% of those surveyed believe cryptoassets will be invested and traded in by the year 2021.
Conducted in December and January by PollRight, a market research company, the survey seem to reveal a greater willingness on the part of Wall Street to invest in cryptocurrency than many believe.
The ICO market, which has cooled off over the past year, was also a topic of the survey — 16% of the participants said they would invest in the ICO sector within three years, and 41% believe that institutional investors will enter the space within the next five years. However, 23% responded that they do not see potential for meaningful investment in the space.
In the press release, CEO of GBBC Sandra Ro noted that by 2027, cryptoassets would make up at least 10% of the global GDP — a huge increase, even from crypto market’s high point. The total GDP of the world is about $80 trillion, while the cryptocurrency market peaked at about a $800 billion value in January 2018, representing about 1% of the gross world product (GWP) at the time. According to Coin Market Cap, the total market cap of cryptocurrency is about $120 billion now, meaning to get to 10% of GWP (assuming it doesn’t increase, which it most likely will), the crypto market cap would need to increase by more than 50X. However, given the rate at which the cryptocurrency market has shown it can change, it is not an impossibility.
Last month, GBBC released two other surveys of institutional investors about the crypto sector. According to one, 63% of participants claimed that senior executives did not have a working understanding of blockchain technology. The other survey showed that a staggering 40% of respondents believe blockchain is the most important technological innovation since the internet.