One-third of US and European investment firms own crypto assets
The pandemic has pushed many corporations to invest in cryptocurrency
According to the report, the survey “sought to understand institutional interest and adoption of digital assets, as well as the key barriers to participation in the asset class.”
Fidelity conducted a survey on 774 respondents. 27% of institutions, such as pension funds, investment advisers, family offices, as well as digital and traditional hedge funds, own digital assets. 25% of their respondents hold Bitcoin, with 11% holding Ethereum. There has been a five percent increase in the number of institutions that hold any kind of digital asset in the last year.
The firms that have adopted crypto say that the main factors behind their choice include the fact that it is uncorrelated to other asset classes, has technological potential and a high potential upside.
This is the second consecutive year that Fidelity conducted the survey among US institutional investors and the first for European investors.
President of Fidelity Digital Assets Tom Jessop stated in the report that the results “confirm a trend we are seeing in the market toward greater interest in and acceptance of digital assets as a new investable asset class.”
The survey was carried out by Greenwich Associates and it ran from November 2019 to March this year; just before the coronavirus pandemic struck. Fidelity officials have noted that despite the presence of the virus, the cryptocurrency market has rebounded and continues to grow.
Corporations that have not yet chosen to adopt cryptocurrency have stated price volatility as their biggest concern. However, an overwhelming 91% of respondents confirmed that in the net five years, they are open to a portfolio with at least 0.5 percent of digital assets.
“Investor concerns are largely focused on issues that will resolve themselves as the market infrastructure evolves. We’re proud to be one of many service providers actively driving that evolution for the benefit of the ecosystem and traditional investors alike.” Jessop said.
Fidelity Digital Assets is a platform that secures, trades, and supports digital assets. It is a subsidiary of Fidelity Investments, which is one of the world’s largest and most diversified financial services providers. It has more than $7.9 trillion in client assets under administration.