Digital assets such as cryptocurrencies are most likely to suffer a “Significant correction”next year, according to a survey by Natixis Investment Managers, a US asset management company, with nearly three-quarters of the institutions surveyed saying the Investment was not suitable for retail investors.

The data also showed that 28 per cent of all institutions surveyed had invested in cryptocurrencies (almost a third said they planned to increase their allocation next year) . Taken as a whole, 8 per cent of all institutions surveyed, including investors in and out of digital assets, plan to increase their allocation to cryptocurrencies next year.

Many believe that digital assets such as Bitcoin can be a good hedge against inflation in an economy with high inflation.

Although cryptocurrencies are highly volatile in price, they can yield unimaginably high returns. The Bloomberg Galaxy Index of Cryptocurrencies, the world’s largest, is up about 200 percent this year. 

In addition, about 40 per cent of institutions surveyed consider cryptocurrencies to be a legitimate investment option, although ultimately they need to be regulated by the Central Bank.

So far this year, bitcoin has risen by 70% , ether square by 500% , Solana by 10,275% , Cardano by 691% , dog by 3,000% , The Sandbox by 14,200% and Filecoin by 81% . 

The NATIXIS Investment Managers survey included 500 institutional investors in a number of countries, including four central banks, more than two dozen sovereign wealth funds and more than one hundred and fifty corporate pension funds.