An estimated 5% of the global population owns crypto, with 86% of institutional investors planning or having some exposure this year. However, challenges with clearing and settlement persist, which may create significant future risks. Traditional investors often opt for Exchange-Traded Products (ETPs) due to their familiarity and perceived safety, but these products can introduce additional layers and friction in trades. Individual transactions logged on private ledgers instead of public blockchains lead to a lack of transparency and create uncertainty for investors.
While institutional adoption rates have reached up to 57%, many traditional investors are likely to use ETPs in their trades, viewing them as familiar and safe.
The process of clearing and settlement for institutional investors in crypto remains fragmented, risky, and opaque, potentially exposing the market to significant future risks.
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