Around 71 percent of institutional investors in Asia already hold cryptocurrencies. In Europe it is 56 percent, in the USA so far only 33 percent. In total, 52 percent of institutional crypto assets hold – and many more want to enter this asset class in the coming years. That was the result of a recently published survey by Fidelity Digital Assets.
The number of institutions invested in crypto has increased. Last year it was only 45 percent in Europe and 27 percent in the USA. And more than 70 percent of institutional investors are planning further or first-time investments in the crypto market in the coming years. “The growing interest and adoption we are seeing reflects the growing complexity and institutionalization of the digital asset ecosystem,” said Tom Jessop, president of Fidelity Digital Assets. “The pandemic, as well as the fiscal and monetary measures in response, have been a catalyst for many institutional investors to set and implement a strategy.”
Correlation and price gains
According to the study, for which 1,100 institutional investors worldwide were surveyed, it is primarily the low correlation with other asset classes and the possible price increases that attract institutional investors. 90 percent of those surveyed with an interest in digital assets assume that they will add crypto investments to their own portfolios or those of their customers in the next five years. “This shows that investors have a deeper understanding of the asset class and have progressed in the three-step journey from education to adoption,” says Jessop.
According to the survey, volatility in the asset class remains the main obstacle to adoption, followed by a lack of fundamental data to determine a true value. Concerns about market manipulation are also mentioned. “However, investors gave fewer concerns about the complexity for institutions and the market infrastructure than before,” said the papers published by Fidelity.
In recent years, more and more institutional investors have invested in crypto assets or added them to products and portfolios. Especially in the area of wealth management for wealthy private customers, many large banks announced their entry into the crypto world.
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