The Canadian financial sector underwent a massive crypto boom in 2023, as revealed by the 39% of respondents who are either directly or indirectly involved in crypto, per the KPMG survey.
The number of financial institutions providing crypto services went up from 18% in 2021 to 22% in 2022, with 50% of the institutions now offering at least one service related to crypto assets, which was 41% in 2021. The most remarkable change was an increase in crypto trading services from 0% to 52% among the firms.
Institutional investors got into the game as well, with an uptick of 26% in the number of those who include crypto in their portfolios. The direct ownership of the digital assets skyrocketed as the figures went up to 75% compared to 29%.
Kunal Bhasin, the representative of KPMG, stated that in 2023, crypto will be about recovery and the return of investors’ confidence while the economic environment remains challenging. Regulatory developments, including the legalization of the Bitcoin and Ethereum ETFs by Canada, added to the growth performance.
The survey also discovered a shift to multi-asset strategies, which is a direct consequence of investors’ growing interest in diversification. Institutional investors are coming in with more crypto in their portfolio, as shown by the 33% of investors allocating 10% or more to crypto, up from 20% last year.
Kareem Sadek forecasts that the growth will keep going, highlighting the effect of Ethereum ETF acceptance and the US SEC’s permission to spot Bitcoin ETFs. This implies that crypto investment in 2024 will soon be a profitable venture.
Also Read: Canada’s Crypto Tax Crackdown Recovers Millions, No Charges Yet
