Cryptocurrencies are no longer just for tech bros and online gamblers. A new survey by KPMG in Canada shows a massive jump in institutional investor interest, with nearly 40% holding some crypto assets in 2023, up from 31% in 2021.

This isn't just a case of dipping a toe in the water either. A third of those surveyed now have at least 10% of their portfolio in crypto, compared to just a fifth two years ago.

What's Driving the Crypto Rush?

So, what's behind this sudden love affair between Wall Street and crypto? The survey points to two key factors:

Maturing Market: Gone are the days of the Wild West crypto market. Investors are feeling more confident thanks to better infrastructure and established custodians to hold their crypto securely.

Strong Performance: Cryptocurrencies, particularly Bitcoin and Ethereum, have delivered impressive returns in recent years. Bitcoin is up 150% in 2023 alone!

The SEC Opens the Door

The long-awaited approval of spot Bitcoin ETFs in the US by the SEC this year was a game-changer. This finally gave institutional investors a safe and regulated way to play the crypto game.

Crypto Chatter on Wall Street

Financial advisors are also starting to warm up to crypto. Another survey shows a significant increase in the number of advisors planning to recommend crypto to their clients. Major firms like JPMorgan and AllianceBernstein are even providing research coverage on digital assets, leading to more informed conversations between investors and companies.

Hong Kong Joins the Crypto Party

The trend isn't just limited to North America. Hong Kong has also seen a surge in crypto interest, fueled by clearer regulations and the launch of their own Bitcoin and Ethereum ETFs.

This increased institutional appetite suggests that crypto is here to stay. While the future remains uncertain, one thing is clear: Wall Street is taking crypto seriously.