Fun

Majority of Institutions to Hold Digital Assets in Near Future, Survey Suggests

News Feed - 2021-07-21 12:07:30

Majority of Institutions to Hold Digital Assets in Near Future, Survey Suggests


Most institutional investors look forward to adding digital assets to their portfolios, in spite of concerns over crypto market volatility. More than half of the respondents in a new survey conducted by Fidelity’s crypto subsidiary have revealed they already have digital asset investments. Poll Confirms Strong Institutional Interest in Digital Assets


Despite the uncertain regulatory environment in the crypto space, 70% of institutional investors are likely to acquire digital assets in the near future, a study carried out for Fidelity Digital Assets has indicated. Price volatility remains a major obstacle to capital inflow, yet 90% of these respondents expect their firms and clients to buy cryptocurrency or make other crypto-related investments within the next five years.


The survey has been conducted by Coalition Greenwich among 1,100 institutional investors between December last year and April 2021. High net worth investors, family offices, digital and traditional hedge funds, financial advisors, and endowments were polled, Reuters detailed in a report. Over half of them said they had already invested in digital assets, either via direct purchase of cryptocurrency and related investment products or through acquisition of stocks of crypto companies.


This and other recent studies have confirmed a stable mainstream interest in crypto asset investments. A global poll released in June indicated that hedge funds are also planning to significantly increase their exposure to digital assets during the same five-year period.


In a vote of confidence, 100 CFOs said their funds would hold an average of 7.2% of their assets in cryptocurrency by 2026, or over an estimated $300 billion. That’s despite the decline in crypto prices and trading activity in past months, with the leading cryptocurrency, bitcoin (BTC), losing 50% of its market cap since April.


The participants in the poll ordered by Fidelity pointed to price volatility as the main barrier to potential investors that want to enter the crypto market. Another obstacle cited in the report is the lack of fundamentals necessary to assess the value of these assets, followed by concerns over possible market manipulation.


A JPMorgan survey of around 3,000 investors showed last month that an overwhelming majority of them (95%) believe fraud is prevalent in the crypto world, with only 10% of these professionals trading cryptocurrencies at the moment. As private investors, however, 40% of the respondents admitted to being active in the crypto market.


What’s your opinion about the survey results released by Fidelity Digital Assets? Share your thoughts on the subject in the comments section below. Circle Publishes USDC Attestation, Reserve Report Reveals Segregated Accounts in USD-Denominated Assets NEWS | 3 hours ago Robinhood Aims for $35 Billion Market Valuation in Upcoming IPO NEWS | 5 hours ago Tags in this story Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, data, Digital Assets, fidelity, Fidelity Digital Assets, institutional investors, institutions, Investments, Poll, Results, study, Survey


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

LBank Labs Establishes Blockchain and Crypto Investment Fund to Support the Development of Web3 in Africa
LBank Labs Establishes Blockchain and Crypto Investment Fund to Support the Development of Web3 in Africa press release PRESS RELEASE. Internet City, Dubai, Nov. 11th, 2022 —
Value Locked in Defi Rebounds — Smart Contract Tokens CPH, LUNA, XCP Lead the Pack
Value Locked in Defi Rebounds — Smart Contract Tokens CPH, LUNA, XCP Lead the Pack The total value locked in decentralized finance (defi) has managed to jump above the $200 billi
Helen Partz14 hours agoCrypto’s Lehman moment: Investors buy $250M of FTX claims — ReportIt’s hard to know how much a collapsed crypto firm like FTX would be worth by the time its bankruptcy is resolved.1749 Total
Derek Andersen5 hours agoEnglish school turned BTC miner in China expands capacity with 220 new unitsBTC Digital used to be a chain of English schools based in Shenzhen. Now it has mining farms in Pennsylvania and Tennes
David Attlee13 hours agoFinland works on instant payments system, embraces digital euroThe Bank of Finland actively promotes the development of new forms of payment.1491 Total views5 Total sharesListen to article 0:00New
Vaneck CEO Predicts Bull Cycle for Bitcoin and Gold — Expects Fed Tightening to End Soon
Vaneck CEO Predicts Bull Cycle for Bitcoin and Gold — Expects Fed Tightening to End Soon The CEO of investment management firm Vaneck has predicted a bull cycle for gold and bitc
Josef Tetek7 hours agoBitcoin ETFs: Even worse for crypto than central exchangesWant some worthless "paper" Bitcoin? With the rise of Bitcoin ETFs, you might soon have the chance to invest in something as worth
Silk Road Hacker Sentenced to a Year in Prison for Wire Fraud
Silk Road Hacker Sentenced to a Year in Prison for Wire Fraud On April 14, 2023, the Department of Justice (DOJ) for the Southern District of New York revealed that the hacker resp
Bitcoin Price Targets 3-Week Losing Streak in $14 Billion Overnight Wipeout
Bitcoin price fell sharply on Thursday"s trading to land around the $9,500 level. | Source: Shutterstock By CCN Markets: The bitcoin price crumbled overnight, breaching the psychol
Market Analyst Heralds the Collapse of ‘Everything,’ Calls for Hedging in Gold and Silver Before There Isn’t Any Left
Market Analyst Heralds the Collapse of "Everything," Calls for Hedging in Gold and Silver Before There Isn"t Any Left Egon von Greyerz, market analyst and founder of Matterhorn Ass
Mexican Crypto Exchange Bitso Launches Stable Yield Program
Mexican Crypto Exchange Bitso Launches Stable Yield Program Bitso, a Mexico-based cryptocurrency exchange, is expanding its range of crypto investing options. The company has annou
CFTC Chair Says Ether Futures ‘Likely’ in 2020
Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert believes the crypto world will see ethereum futures contracts sometime in 2020. Speaking at Georgetown University