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Crypto Industry To See Mass Institutional Adoption: Fidelity

Crypto Industry To See Mass Institutional Adoption: Fidelity

According to a survey by Fidelity Digital Assets, interest in crypto investments continue to be on the upswing, despite the recent market volatility, with a whopping 70% of institutional investors showing interest in the digital asset class. 

Survey Finds Industry-Wide Crypto Acceptance 

In a blind survey conducted by Coalition Greenwich on behalf of Fidelity Digital Assets, more than 1,100 institutional investors across the US, Europe, and Asia were interviewed between December and April about their interest in crypto investments. The interviewees included high net worth investors, family offices, digital and traditional hedge funds, financial advisors, and endowments. More than 50% of them said that they are currently holding crypto investments. 

The survey also discovered comparatively higher crypto exposure and interest among Asian investors than other parts of the world, with those from the US and Europe catching up rapidly. 

Most Portfolios To Feature Crypto By 2026: Fidelity

The survey reports high possibilities of mass institutional adoption in the near future, with almost 70% of the investors interviewed showing interest in making crypto investments. This included direct crypto investments or exposure through stocks of cryptocurrency companies or other investment products.

The research further discovered that around 90% of those interested in investing in the future said they expected to see significant digital asset investments in their company's or their clients' portfolios within the next five years, i.e., by 2026. 

‘Temporary Fad’ Or Treasure Trove? The Argument Continues

Despite the mainstream interest, most crypto prices and trading volumes have gone through a tremendous slump in the second quarter of 2021. Bitcoin itself has lost 50% of its value since hitting its peak in April 2021. 

One of the major qualms that institutional investors have about adopting this asset class is price volatility. The survey also found that the lack of fundamental knowledge about the workings of cryptocurrencies was also inhibiting the investors from taking a leap. 

In another survey conducted last month by JPMorgan Chase & Co, only 10% of institutional investment firms were found to be trading in cryptocurrencies, with nearly half of them denouncing the emerging asset class as a temporary fad.

Fidelity’s Crypto-Faithful Run Continues With Trading Platform

Fidelity Digital Assets was launched as the cryptocurrency arm of the Boston-based Fidelity Investments in 2018 to offer custody and execution services for digital assets to institutional investors. By offering crypto-related services, this mainstream financial services provider has caught the attention of several financial institutions, like TP ICAP. The latter is the world’s biggest inter-dealer broker and, as of last month, reported that it had partnered up with Fidelity and Standard Chartered to launch a crypto trading platform.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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