Fidelity Digital Assets has published the results of a survey conducted on institutional investors across the United States and Europe. Indicating solid growth and a better perception of their value, the survey corroborates other reports on institutional investments that have been released recently.
Fidelity Digital Assets has published the results of a survey that was conducted between November 2019 and March 2020, which speaks positively about the adoption of Bitcoin by institutional investors. One third of institutional investors in the US and Europe hold Bitcoin, other digital assets, and/or derivative products.
Conducted by Greenwich Associates, the results show investors in Europe having more confidence in Bitcoin than their United States counterparts. 45% of European investors had invested in the asset class, while that number is 27% for the US. Over 25% have invested in Bitcoin, while 11% have invested in Ethereum
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President of Fidelity Digital Assets, Tom Jessop, referred to the negative interests that have been established in European countries as a potential reason for this support,
Europe is perhaps more supportive and accommodating. [There are] things going on in Europe right now, you got negative interest rates in many countries. Bitcoin may look more attractive because there are other assets that aren’t paying return. These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class.
A Positive Outlook for Cryptocurrency
While not all surveyees may have allocated a portion of their portfolio to digital assets, a vast majority seem to think that there is potential in cryptocurrencies.
Nearly 80% of these investors ‘find something appealing.’ This was described in the report as follows: 36% said they liked that it was uncorrelated to other asset classes, 34% said it was an innovative technology, and 33% said it had a high potential upside. 25% of European investors also appreciated the fact that it was free from government intervention, while only 10% of U.S. investors felt this way.
However, there are concerns for institutional investors, who marked price volatility
We can describe volatility as how much the value of an asset changes over a given time. A volatility index… More as the largest challenge. Over half of those surveyed felt this way, while just under half were concerned about market manipulation. The silver lining is that U.S. investors show fewer reservations now compared to last year.
Grayscale Investments Shows Greater Institutional Growth
Grayscale Investments has also provided a lot of information in the past few months that point to greater institutional interest, with customers buying Ethereum
Blockchain is a digital ledger that’s used for storing data on several servers across the world in a decentralized, trustless… More (ETH) at a 700% premium over the spot market.
Grayscale’s Bitcoin (BTC) and Ethereum Trusts have performed well, as the firm reported its largest inflow in Q1 2020, drawing in $30 million. The firm’s assets grew tenfold since Q1 2019, and CEO Barry Silbert says that more growth is on the way.
The asset management firm has doubled down on its cryptocurrency services, buying more Bitcoin than was mined since the last halving and buying almost half of all Ethereum mined in 2020.
Images courtesy of Shutterstock, TradingView and Twitter.
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As a leading organization in blockchain and fintech news, BeInCrypto always makes every effort to adhere to a strict set of editorial policies and practice the highest level of journalistic standards. That being said, we always encourage and urge readers to conduct their own research in relation to any claims made in this article. This article is intended as news or presented for informational purposes only. The topic of the article and information provided could potentially impact the value of a digital asset or cryptocurrency but is never intended to do so. Likewise, the content of the article and information provided within is not intended to, and does not, present sufficient information for the purposes of making a financial decision or investment. This article is explicitly not intended to be financial advice, is not financial advice, and should not be construed as financial advice. The content and information provided in this article were not prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making any investment decisions. The author of this article may, at the time of its writing, hold any amount of Bitcoin, cryptocurrency, other digital currency, or financial instruments — including but not limited to any that appear in the contents of this article.
