A new survey has found a growing interest from institutional investors to invest in digital assets, industry website Coindesk has reported.
Fidelity Investments yesterday published research showing that around 22% of investors already had some exposure to digital currencies, while 40% were open to tap into the sector in the next five years. According to Fidelity, the survey was conducted among over 400 US institutional investors, including hedge funds and financial advisers – both crypto and traditional ones – pensions, family offices, endowments and foundations.
‘Maturation of interest’
Some 57% of respondents said they wanted to invest in digital assets directly, while 72% are interested in investment products that hold digital assets. Some 57% also expressed interest in investment products that hold digital asset firms.
“We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge funds, to traditional institutional investors like family offices and endowments,” Tom Jessop, president of Fidelity Digital Assets, said, as quoted by Coindesk.
“More institutional investors are engaging with digital assets, either directly or through service providers, as the potential impact of blockchain technology on financial markets – new and old – becomes more readily apparent,” he added.
On the subject of what makes digital assets appealing, 74%-80% of the participants in the survey pointed to the “characteristics” of digital assets. Meanwhile, 47% said digital assets were an innovative technology and 46% cited their low correlation to other asset classes.
Meanwhile, price volatility was cited as the main concern when it comes to the sector. Jessop said that this particular concern might dampen as the development of “custody, trading and financing infrastructure” progressed.
Fidelity Digital Assets, the crypto unit of Fidelity investments, was launched in October of last year, with the aim to develop new cryptocurrency solutions such as custody and trading services for institutional investors. The development garnered very positive reaction from crypto investors and experts, many of whom had been advocating for the development of a more advanced infrastructure able to facilitate crypto trading on an institutional level.
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