Do institutional investors finally realize the potential of crypto-currencies, especially Bitcoin? Is what we’ve been waiting for so long close at hand? It seems that Fidelity Digital Assets has something to say about that.
Yesterday, Fidelity Digital Assets revealed its latest findings from a survey of over 800 institutional investors, which was conducted between November 2019 and March 2020.
It is important to note that the survey included everything from financial advisors and high net worth individuals to pension managers and crypto hedge funds.
Institutional investors show interest in Bitcoin
Is the mass adoption of the crypts near?
According to the survey conducted by Fidelity, up to 36% of institutional investors in the United States and Europe own cryptos.
In the specific case of the United States, Fidelity found that 37% of the 441 U.S. institutions surveyed are exposed to crypto currencies, representing a 22% increase over last year.
In Europe, 45% of the companies surveyed said they owned cryptosystems.
Tom Jessop, president of Fidelity Digital Assets, explained Europe’s increased interest in cryptology because of what is happening there: „You have negative interest rates in many countries,“ he said in an interview with Bloomberg.
However, the figures above tell us that there has been an increase in the comfort that institutional investors feel in the emerging asset class – crypto-currencies.
But, even more optimistically, they show that these numbers are likely to increase as the market matures. In fact, Fidelity’s survey found that almost two-thirds of companies said they thought there was room for crypto in their portfolio.
„These results confirm a trend we are seeing in the market towards greater interest and acceptance of digital assets as a new investment asset class,“ Tom Jessop said in a statement.
Bitcoin as Hegemon of the World
Bitcoin is still the king
According to the survey, of all the digital assets held by institutional investors, Bitcoin Rush is by far the most popular crypt. Specifically, it was found that more than 25% of the respondents indicated that they own Bitcoin and 11% have Ethereum.
Without a doubt, Bitcoin continues to show the market its potential. Even in difficult years like 2020, BTC has managed to increase by 36% since the beginning of the year.
The main advantage that investors see in digital assets is their liquidity, low transportation, storage and transaction costs. In addition to the elements of crypto-currency.
However, institutions are still undecided about the crypt market. The main obstacles they find to invest in crypto-currencies are their volatility and concerns about market manipulation.
It is important to note that, the above mentioned concerns were prevalent among almost half of the respondents.