A recent study by Fidelity Digital Assets on the interest of institutional investors highlighted that 70% of respondents expressed their intention to buy or invest in digital assets in the near future. Furthermore, almost 90% of respondents can be expected to add cryptocurrencies to their companies or clients’ wallets in the next 5 years.
The study surveyed 1,100 global institutional investors between December 2020 and April 2021. And for the purposes of this, exposure to digital assets was defined as investing in cryptocurrencies directly. The purchase of shares of companies related to cryptocurrencies or exposure through other investment products.
Fidelity Digital Assets, the crypto arm of global asset management giant Fidelity Investments Inc, commissioned Coalition Greenwich. To survey these 1,100 institutional investors. And thus understand your expectations regarding investments in digital assets.
Interest in cryptocurrencies continues to grow despite the bullish recession in the market
New data from Fidelity Digital Assets shows that institutional investors’ interest in cryptocurrencies and crypto-related businesses continues to grow.
The survey was conducted with the participation of high net worth investors. Family offices, digital and traditional hedge funds. As well as financial advisers and donations, he reported.
The definition of investing in digital assets defined by the survey team included investing in cryptocurrencies directly. Buy shares of companies related to cryptocurrencies. Or, be exposed through other investment products.
Around 70% of the participants expect to invest in digital assets in the next five years. Nine out of 10 of those interested in investing expect that their company or client portfolios will add digital assets within the same time window.
Fidelity Digital is working to keep up with institutional interest in digital assets.
Grayscale is another player in institutional investments. 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 aim to increase their exposure to crypto assets
The aforementioned finding is in line with other recent surveys that have 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 between now and 2023. In contrast, a survey by Fidelity Investments was pivotal due to its position in relationship with traditional finance.
Here, it’s worth noting that the company’s digital assets arm has increased its functionality in the wake of a recent announcement. Which increased its staff by 70%. This was clearly a sign that the demand from institutional investors for crypto-services has only been increasing.
Most significantly, TP ICAP, the world’s largest broker of intermediaries. Announced last month that it will launch a crypto trading platform for institutional investors in partnership with Fidelity and others.
Finally, the Fidelity survey also found that more than half of the institutions that were surveyed already had allocations in digital assets. Additionally, investors from Asia were found to have more exposure to crypto assets, and those from Europe and the US were constantly catching up.
However, entry barriers and skepticism remain prevalent among surveyed investors. Along with market manipulation and a lack of fundamentals, price volatility was cited as the main impediment for these investors to enter the crypto market.
The latter, in fact, has been cited as one of the main reasons why a Bitcoin ETF has not been approved in the United States by the country’s regulatory agencies.