KPMG is a powerhouse in the world of accounting and, according to the company’s analysts, investors are increasingly seeing Bitcoin as a way to protect themselves against inflation; the loss of value of government currencies. In a new report, KPMG looks at the Canadian market and says that by 2023, half of all financial services providers will offer crypto products, up from 41 percent in 2021.

Rich investors choose bitcoin

Furthermore, KPMG’s research found that 39 percent of all Canadian institutional investors had crypto (and especially bitcoin) in their portfolio. That percentage was still 31 percent in 2021.

Kareem Sadek, who specializes in digital assets at KPMG, says institutional investors in Canada are more comfortable with it for two reasons. crypto.

“Canada played a leading role in creating a legislative environment that supports innovation in crypto. From approving the first Bitcoin and Ethereum ETFs to allowing sophisticated strategies involving derivatives and Ethereum staking.

Such actions, combined with rising crypto asset prices, are likely the reasons for crypto’s increased appeal to institutional investors,” Sadek said.

Protection against inflation

Kunal Bhasin, who is a partner at KPMG, says institutional investors in Canada are also looking at crypto as a way to protect themselves against national currency inflation.

He mentions, among other things, the rising national debt of the United States as a problem.

“Rising US government debt combined with inflation were likely a catalyst for the crypto rally in 2023. It appears that investors are looking for alternative asset classes that protect them from inflation and provide a reliable store of value.

Our surveys show that crypto assets are increasingly seen as an asset class to invest in among institutional investors,” said Bhasin.


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