Over half of investors require insurance for crypto asset exposure

Security concerns remain dominant even as most respondents see low systemic risk.

Publicly listed companies are increasingly using cryptocurrency as a reserve asset, but institutional investors are now demanding stronger safeguards, including insurance coverage, to manage these digital holdings. 

A global survey of 260 institutional investors and wealth managers, who collectively oversee $14t in assets, revealed that 63% expect at least 10% of S&P 500 companies to hold Bitcoin on their balance sheets within the next five years, according to Nickel Digital Asset Management.

Currently, one in three professionals predicts a dramatic rise in these Digital Asset Treasury (DAT) companies by 2029. 

Whilst 86% of those surveyed view the systemic risk of this trend as low, they are becoming more selective about how these assets are managed. 

Safety remains a primary concern, with 55% of investors stating they now require insurance coverage from digital asset providers. 

This demand for protection sits alongside other transparency requirements, such as real-time dashboards and the use of established third-party custodians. 

Ease of investment is the main driver behind the growth of these crypto-holding companies, cited by 70% of respondents. 

However, as the market matures, analysts suggest that simply holding Bitcoin is no longer enough to attract capital. 

Future growth in the sector will likely depend on companies providing more sophisticated balance-sheet management and professional-grade security structures that investors cannot easily replicate on their own.