Tom Jessop Thinks The Market Is Still An Early Adopter

Tom Jessop Thinks The Market Is Still An Early Adopter

Even though cryptocurrency is still in its early days, Tom Jessop, the head of Corporate Business Development at Fidelity Investments and president of Fidelity Digital Assets.

“What’s interesting when you look at the data, as you might expect, it’s still very much an early adopter market, like the folks that you would look at, and say would tend to be more of the risk taking investors on the spectrum, so the hedge funds, and perhaps the family offices are further ahead than the pension funds and the endowments.”

Fidelity has recently started to offer a Bitcoin custody service too. Jessop has said, “we started with what I’ll call ‘crypto-native’ types — so a lot of crypto hedge funds.”

In regards to potentially bringing in the 401k side to crypto, Jessop said:

“I don’t think that market’s ready for this. When you’re talking about institutional liquidity, given that many of these exchanges have effectively retail order books, the price impact of big, institutional orders into a framework like that can be significant.”

The combined market cap of all cryptocurrencies and tokens currently stand at around $140 billion. That is one publicly traded stock firm which is like, ten percent of Apple shares.

The international stock market, by comparison, is $100 trillion which makes cryptos 0.1 percent of its. Then you then have the gold market which is some trillions, housing, bonds and so on.

In several ways, cryptocurrency is the small fish in a big pond when talking about $2.5 trillion to be spent somewhere with the hope of making a return.

Some early adopters among institutional investors have already shifted some of their finances towards cryptocurrencies although it is probably only a small amount when you think of their overall ‘catelogue’ so to speak.

 

“We just completed a survey of about 450 institutions, so everything from family offices to registered investment advisors to hedge funds. It’s interesting, I think about 20% indicated that they currently allocate to digital assets with an intention to grow that… of the folks they allocated, they will increase their allocation on average. They’ll double their allocation over the next five years.”

 

There have been a number of studies that have shown cryptos have a very unique quality in investing, they don’t correlate with anything.

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