- KPMG’s survey states that 22% more financial institutions in Canada provided crypto services in 2023.
- In 2023, 26%+ institutional investors added digital assets to their portfolios.
- 40% institutional investors had direct or indirect exposure to cryptocurrencies in 2023, up from 31% in 2021.
A recent survey released by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA) has revealed increasing crypto adoption in Canada. Embracing a better regulatory framework, Canada has returned to the developing crypto markets, with investors and organizations actively taking part in the crypto trade.
According to the survey, crypto services in Canadian financial institutions in 2023 have grown by 22%+ compared to 2021. In addition, 26% more institutional investors have included digital assets in their portfolios.
Reportedly, 2021 was a strong year for crypto assets as the bullish market attracted investors. However, the following year was a “turbulent year, marked by fraud and collapses of major crypto asset trading firms.” Kunal Bhasin, partner and co-leader of KPMG in Canada’s Digital Assets practice, commented that the long crypto winter of 2022 had a “cleansing effect on the industry.” Further, he added,
“Rising U.S. debt combined with increasing inflation likely provided a catalyst for the crypto rally of 2023, and it appears investors are looking for alternative asset classes that act as a debasement hedge and a reliable store of value. Our survey findings suggest crypto assets are increasingly seen as an investible alternative asset class…in Canada.”
The survey further highlighted that 50% of financial services firms offered a minimum of one crypto service, up from 41% in 2021. Of these financial service firms, 24% issued exchange-traded funds or similar regulated products. In addition, 48% of the firms offered custody, clearing, and settlement services in 2023, while only 33% provided the same in 2021.
Moreover, nearly 40% of institutional investors had direct or indirect exposure to cryptocurrencies in 2023, up from 31% in 2021. It is noteworthy that 75% of investors owned crypto assets directly, while 50% had connections through ETFs and other regulated products.
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