Institutional investors are using Bitcoin more to hedge against inflation and currency devaluation and concerns about poor insurance

New research from cryptoasset insurance company Evertas, reveals that 80 per cent of institutional investors believe the recent coronavirus-led quantitative easing policies adopted by Central Banks and Governments could lead to a rise in inflation, and over the next five years, institutional investors will increasingly look to invest in Bitcoin to hedge against this and currency devaluation.

The findings also reveal that between now and 2025, 90 per cent expect institutional investors to invest more in cryptoassets like Bitcoin, and 80 per cent expect retail investors to do the same.

However, one of the biggest obstacles to the cryptoasset investment market growing is the poor level adequate insurance to cover these assets. Over half of institutional investors ‘strongly’ agree with the view that a lack of adequate insurance to cover cryptoassets is dramatically holding back the level of investment from institutional investors, hedge funds and retail investors in cryptoassets. 
Raymond Zenkich, President and COO, Evertas, says: “An inadequate level of insurance is holding back growth in the cryptoasset market. Insurers need to invest heavily in their risk management and underwriting processes to develop a strong understanding of the risks involved in owning and storing cryptoassets, and then from this develop robust policies and claims management processes to service this market.  
“We are working closely with brokers and insurers to help them address this knowledge and proposition gap.” 

Evertas focuses on covering institutional holders of cryptoassets including exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals. 

Earlier this year, the company completed a USD2.8 million seed stage funding round led by Morgan Creek, who were joined by Plug n Play, Kailash Ventures, RenGen, Vy Capital and Wavemaker Genesis. 

Mark Yusko, Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management & Managing Partner of Morgan Creek Digital Assets, joined Evertas’ Board of Directors.
It also received its licence from the Bermuda Monetary Authority to start operating from the jurisdiction and operates as a ‘Class 3A’ insurer.