UK crypto fund Nickel Digital Asset Management has released a survey of 100 global asset managers and institutional investors to identify major investor concerns.

The survey took part in the United States, France, Germany, the United Arab Emirates and the United Kingdom, who together have $ 275 billion in assets under management.

The survey, conducted online from May to June 2021, shows low confidence institutional investors have in crypto security, with 76% of respondents citing security concerns.

The respondents also identified the regulatory environment as a major obstacle. Other major concerns include a lack of transparency and volatility, as well as the lack of reputable fund managers offering crypto investments.

Anatoly Crachilov, Co-Founder and CEO of Nickel Digital, says institutional concerns about the security and custody of cryptocurrencies are emerging despite the industry making “very strong advances in blockchain” on that front. Crachilov explained that cryptocurrency service providers are increasingly implementing complex cryptographic solutions such as distributed keys and multi-party compute pools as traditional financial institutions are turning to such services.

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“We are now seeing Fidelity, BNY Mellon and State Street entering the market, further strengthening the market infrastructure. All of this increases confidence in the sector and leads to an ever increasing allocation to this fast growing asset class, ”said Crachilov.

The new survey comes shortly after the Australian exchange issued a warning about custody services on centralized cryptocurrency exchanges, warning investors of security risks in the form of theft by hackers.