Institutional investors want a piece of the crypto pie, as per a survey commissioned by Fidelity Investments. When questioned, 57% of over 440 institutional investors preferred holding crypto assets in their portfolios, while 72% showed an inclination towards buying investment products based on cryptocurrencies.
Key findings of the survey are:
- 72% prefer to buy investment products that hold digital assets
- 57% prefer to buy crypto assets directly
- 57% prefer to buy an investment product that holds digital asset companies
- 47% appreciate that digital assets are an innovative technology play
- 46% find digital assets’ low correlation to other assets among the most appealing characteristic
- Financial advisors (74%) and family offices (80%) view the characteristics of digital assets most favorably
Stats above clearly show that Bitcoin has come a long way from the cryptocurrency of choice for hackers and underground elements to a legitimate asset class holding its own among conventional financial instruments. Its prominence and acceptance has also opened doors for other cryptocurrencies, such as Ethereum and XRP, which have grown onto become mainstream entities.
However, Fidelity’s survey, which included pension funds, family offices, hedge funds, university endowments and other bodies, also highlighted concerns about the volatility characteristic of crypto markets, lack of reliable price determining metrics and regulatory uncertainty as key hurdles to institutional involvement.
Moreover, at BitBull Capital, we have continued to stress on the need for robust and practical crypto insurance and custody solutions, which will further promote institutional investment.
With the recent price recovery exhibited by Bitcoin and the market in general, it is more important than ever to facilitate institutional investment in the space to allow it to grow in a sustained manner and mature into a bigger, more stable market.