A recent Fidelity Digital Assets survey of institutional investor interest found that 70% of respondents expressed an intention to buy or invest in digital assets in the near future. In addition, almost 90% of those surveyed are expected to add cryptocurrencies to their business or client portfolios over the next 5 years.
The study surveyed 1,100 global institutional investors between December 2020 and April 2021. And for these purposes, access to digital assets has been defined as direct investment in cryptocurrencies. Purchase of shares of companies related to cryptocurrencies, or exposure through other investment products.
Fidelity Digital Assets, the cryptocurrency arm of global asset management giant Fidelity Investments Inc, has commissioned the Greenwich Coalition. Explore these 1,100 Institutional Investors. And thus understand your expectations from investments in digital assets.
Interest in cryptocurrencies continues to grow despite a bullish recession in the market
New data from Fidelity Digital Assets shows that institutional investor interest in cryptocurrencies and cryptocurrency-related businesses continues to grow.
The survey was conducted with the participation of wealthy investors. Family offices, digital and traditional hedge funds. As well as financial advisors and donations, ”he said.
The research team’s definition of investing in digital assets includes direct investment in cryptocurrencies. Buy stocks of companies related to cryptocurrencies. Or take risks through other investment products.
About 70% of participants plan to invest in digital assets over the next five years. Nine out of ten people looking to invest expect their business or client portfolios to add digital assets during the same time window.
Fidelity Digital is committed to tracking organizations’ interest in digital assets.
Grayscale is another player in institutional investment. In addition to cryptocurrencies like Bitcoin (BTC) or Ether (ETH), the digital asset management company also plans to enter the world of Decentralized Finance (DeFi).
Investors are looking to increase their availability to cryptoassets.
The above finding is consistent with other recent research that has increased investor interest in the BTC market. Earlier this month, a survey by Nickel Digital Asset Management showed that 82% of institutional investors plan to increase their exposure to cryptocurrencies by 2023. In contrast, the Fidelity Investments survey was decisive because of its stance in relation to traditional finance.
It should be noted here that the company’s digital assets division has expanded its functionality following a recent announcement. This increased the staff by 70%. This was clearly a sign that the demand from institutional investors for crypto services has only increased.
Most importantly, TP ICAP, the world’s largest brokerage intermediary. Last month, it announced the launch of a cryptocurrency trading platform for institutional investors in partnership with Fidelity and others.
Finally, the Fidelity study also found that more than half of the organizations surveyed had already distributed digital assets. In addition, it has been found that investors in Asia are more vulnerable to cryptoassets, with investors in Europe and the US constantly catching up.
However, barriers to entry and skepticism remain widespread among investors surveyed. Apart from market manipulation and lack of fundamentals, price volatility has been cited as the main obstacle to these investors entering the cryptocurrency market.
The latter, in fact, has been cited as one of the main reasons why the Bitcoin ETF has not been approved in the United States by regulators across the country.