A surge in cryptocurrency investments by institutional investors in Canada has been highlighted in a 2023 survey conducted by KPMG. The survey, part of the consulting firm’s bi-annual Institutional Adoption of Cryptoassets series, noted that 75% of institutional investors now hold cryptocurrencies, up dramatically from 29% in 2021. This marked increase reflects a broader trend of growing interest in alternative assets that offer protection against inflation and currency debasement, driven by factors such as rising U.S. debt levels.

KPMG’s findings also revealed that investment in crypto-related public equities and derivatives products is on the rise among hedge funds, family offices, and pension funds, with exposure increasing to 66% and 42%, respectively. However, the sector of wealth management showed a decrease, with only 14% of firms advising on crypto investments, down from 42% two years ago. This growth trajectory is supported by Canada’s regulatory approach, which favors engagement over enforcement, making it an increasingly attractive environment for crypto firms and investors alike.

Survey