62% of Institutional Investors are interested in Bitcoin

According to the survey of Triad Securities, 62% of Institutional Investors are buying of considering Bitcoin
21 November 2017   377

Between 6th to 13th of November, Triad Securities Corp. and DataTrek Research, LLC spoke with 317 institutional traders in a survey that shows their views on bitcoin and ICOs.

When participants were asked whether they had ever bought bitcoin or other cryptocurrencies, 31% said yes, and around half having done so only within the last six months. Another 36% professed to be considering buying bitcoin, 31% ruled it out altogether and, not surprisingly, just 1.5% of respondents confessed to being unfamiliar with bitcoin.

The same group was also asked about ICOs, which received less enthusiasm than bitcoin. The number of traders who had invested in them was less than 8%, and 48% stated that they hadn’t even looked at ICOs. 29% of those surveyed did admit to considering the merits of ICO investment, and another 15% expressed a desire for additional regulation before they would consider venturing into the space.

41% see bitcoin as a safe store of value similar to gold and just over 39% think bitcoin is a bubble that’s destined to crash. 27% think it will continue to rise gradually, and another 17% are bona fide bulls, asserting that bitcoin will double in value in the next six months.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   29

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.