on the crypto
According to a Fidelity Digital Assets survey, interest in investments in cryptocurrencies continues to grow despite recent market volatility, with 70% of institutional investors showing interest in the digital asset class.
The survey notes the acceptance of cryptocurrencies at the industry level
In a blind survey conducted by Coalition Greenwich on behalf of Fidelity Digital Assets, more than 1.100 institutional investors in the US, Europe and Asia were interviewed between December and April about their interest in investing in cryptocurrencies. Respondents included wealthy investors, family offices, digital and traditional hedge funds, financial advisors, and more. More than 50% of them said they currently own cryptocurrency investments.
The survey also found relatively higher exposure and interest in cryptocurrencies among Asian investors than in other parts of the world. However, those in the United States and Europe are catching up quickly.
Most wallets will include cryptocurrencies by 2026: Fidelity
The survey reports high chances of mass institutional adoption in the near future, with nearly 70% of investors surveyed showing interest in investing in cryptocurrencies. This included direct investing in cryptocurrencies or exposure through shares of cryptocurrency companies or other investment products.
The research also found that around 90% of those interested in investing in the future said they expect to see significant investments in digital assets in their company or customers' portfolios within the next five years, which is by 2026.
A fad or a real treasure? The dispute continues
Despite mainstream interest, most cryptocurrency prices and trading volumes suffered a tremendous slump in the second quarter of 2021. Bitcoin itself has lost 50% of its value since it peaked in April. 2021.
One of the biggest hurdles institutional investors have in adopting this asset class is price volatility. The survey also found that a lack of fundamental knowledge about how cryptocurrencies work was also preventing investors from taking a leap.
In another survey conducted last month by JPMorgan Chase & Co, it was found that only 10% of institutional investment firms were trading in cryptocurrencies, with nearly half denouncing the emerging asset class as a fad.
Fidelity's run continues with the trading platform
Fidelity Digital Assets was launched as the cryptocurrency arm of Boston-based Fidelity Investments in 2018. The company offers custody and execution of digital assets to institutional investors. By offering services related to cryptocurrencies, this traditional financial services provider has attracted the attention of several financial institutions, such as TP ICAP. The latter is the largest inter-dealer broker in the world. As of last month, it reported that it partnered with Fidelity and Standard Chartered to launch a cryptocurrency trading platform.
