The asset manager Fidelity measured the crypto fever in a new survey among its institutional clients. The result gives grist to the mill of the crypto bulls.
For the fact that Bitcoin once started to fight the centralized financial institutions, among other things, they feel amazingly at home in the crypto space. This can be seen, among other things, from the steadily growing Bitcoin treasure that the crypto asset manager Grayscale manages in its Bitcoin Trust GBTC. At the time of going to press, 654,600 BTC were already there. Meanwhile, a new survey by Grayscale competitor Fidelity shows that digital assets have become indispensable for representatives of the “Smart Money” genre.
Corona as a fire accelerator of institutional adoption
Fidelity asked 1,100 institutions, family offices and accredited investors whether they were planning to invest in digital assets. According to this, 70 percent of those questioned assume that they will invest in the new asset class for their clientele in the future. Of these, 9 out of 10 are certain that this will happen within the next five years. This means that all the signs point to growth. Because:
This forecast indicates a further acceleration in acceptance in the next few years, as slightly more than half (52 percent) of the institutions surveyed in Asia, Europe and the USA are already investing in digital assets
The corona pandemic and the associated rescue packages that were put together by governments around the world acted as a “catalyst”.
Institutional Adoption: Asia tops the list according to Fidelity
In a regional comparison, Asia has made the greatest advances in institutional adoption of digital assets to date. According to this, 71 percent of the Asian institutions surveyed have already invested in digital assets. For Europe, the value is 56 percent (previous year: 45 percent), while in the USA only every third institution (previous year: 27 percent) already participates in the crypto market – either through a direct investment in crypto assets or indirectly Exchange-traded crypto products or share purchases from crypto companies.
The stumbling block is volatility
The respondents see the biggest obstacle to adoption in the comparatively large price fluctuations that are typical for the crypto sector. In addition, the “instis” still have concerns about market manipulation and pricing for digital assets. After all: the technological complexity of the new asset class seems to be less of a deterrent to major investors than before:
The expectation that the vast majority of institutions will have exposure to digital assets by 2026 shows that investors have a deeper understanding of the asset class and have progressed in the three-step journey from education to adoption,
believes Fidelity President Tom Jessop, who recently announced a massive personnel offensive for his company’s crypto department.