Fidelity Investments Finds 22% of Institutional Investors Own Digital Assets
A survey by Fidelity Investments, a U.S.-based asset manager, has revealed that up to 22 percent of institutional investors hold digital assets.
The firm announced the findings of the survey in a May 2 press release.
Fidelity notes in the press statement that its researchers sampled responses from 411 institutional investors in the United States.
Findings show that 40 percent of those surveyed expressed openness towards cryptocurrency investments, with this group willing to invest in the digital asset space within the next five years.
The study also sampled respondents’ views regarding the prospects of having digital assets added to their portfolios. Nearly half, about 47 percent of those who took part, expressed positivity about the possibility of adding this new asset class to their existing investment portfolios.
From the survey, it can be seen that a majority of institutional investors (about 72 percent), would prefer an investment that allows them to buy into a crypto product. Over half of the respondents, 57 percent, said they would prioritize the direct acquisition of crypto assets.
An equal number of polled institutions noted that the ideal investment would be one that allows them to buy into a product that holds crypto-related firms.
Tom Jessop, the head of Fidelity Investment’s digital asset arm Fidelity Digital Assets, reacted to the survey’s findings by stating that interest in the space had matured, ostensibly from the days of “early adopters.”
Jessop noted that the maturation has seen the interest in digital assets move from such adopters as hedge funds to a stage where now we have “traditional institutional investors,” coming to the fore. The new interest is now driven by players like family offices and endowments funds.
The survey also included a query on why these investors have continued to express greater interest in digital assets. To this, 46 percent of the respondents said that the low correlation between digital assets and other assets was the most alluring attribute.
A further break down of those with positive sentiments regarding crypto features showed 74 percent of financial advisors and 80 percent of family offices say that these features were most appealing.
However, respondents still pointed out aspects like unclear regulation, high volatility, and the lack of fundamentals as some of the obstacles impacting on digital assets and potential investments.
Meanwhile, a separate survey report published a few weeks prior showed that about 11 percent of the U.S. population owned bitcoin.
Fidelity Digital Assets, on its part, has looked to bolster its team with the addition of a veteran of Barclays bank Chris Tyrer.
On the same day, a different survey found that 11% of the American population owns the major cryptocurrency bitcoin (BTC).
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.