A survey by Fidelity revealed that institutional investors are very well positioned with digital assets, especially Bitcoin and Ethereum.
Be it the underlying technological innovation, the low correlation with other asset classes or just the market's growth potential, regardless of the reason almost 80% of institutional investors in the US and Europe are looking more closely at cryptocurrencies. In addition, almost a third of institutional investors already have digital assets in their portfolios.
The findings were revealed today in the results of a Fidelity Digital Assets survey of more than 800 institutional investors, conducted between November 2019 and March 2020, which included financial advisers, people with high net worth, pension fund managers and cryptocurrency hedge funds.
More than a third of the investors surveyed said they already have digital assets and almost two thirds said they believed there was a place for digital assets in their portfolio. Of those who currently have digital assets, more than a quarter have a position in Bitcoin. About 11% of respondents said they have Ethereum in their portfolios and more than 60% said they buy digital assets directly, rather than using an investment broker or third-party custodian.
Investors surveyed cited some important advantages of digital assets over other holdings that make up their portfolios, including greater liquidity, low transportation, storage and transaction costs and unique elements that generate profitability. However, aspects such as extreme price volatility and concerns about market manipulation still prevailed among almost half of those surveyed.
This shows that institutional investors are more comfortable than ever with the emerging asset class and will likely continue to buy as the market matures.