According to a recent survey by Fidelity Digital Assets, more and more institutional investors, including US pension plans, are inclined to invest in crypto assets, including Bitcoin.
The investigation covered various institutional investor segments, including financial advisors, family offices, hedge funds, endowments, foundations and pension funds.
Institutional Investors Dominate Crypto Adoption
The poll results indicate a significant increase in institutional interest in crypto assets. Of all respondents, 74% expressed their intention to purchase or invest in digital assets in the future, a slight increase from 71% the previous year.
In particular, wealthy US investors have shown a substantial increase in their preference for crypto assets, with future interest increasing from 31% to 74% year-over-year.
Despite the positive sentiment, the survey also highlighted concerns and obstacles facing institutional investors. Price volatility emerged as the most significant barrier, with 50% of respondents citing it as their main concern.
Other major concerns included the lack of fundamentals to assess appropriate value (37%), security concerns (35%), market manipulation (35%), and the regulatory classification of some coins as “unsecured securities”. recorded” (33%).
The survey highlighted a notable change in perception among institutional investors. Investors in the United States and Europe have reported increased familiarity, better perception and a higher number of investments in crypto assets. Europe has caught up with Asia in terms of overall growth adoption and a positive perception, while the United States still lags behind.
In terms of specific investor groups, high net worth investors, crypto hedge funds/venture capital firms, and financial advisors showed the highest adoption and consideration rates. digital assets.
This higher adoption can be attributed to the organizational structures and investment decision-making policies of these groups. In contrast, family offices, pension/defined benefit plans, traditional hedge funds, and endowments and foundations showed lower levels of adoption.
There is strong interest in Bitcoin ETFs
The survey also explored the characteristics of digital assets that institutional investors find most attractive. The high upside potential, the opportunity for innovative technological investments and the possibility of decentralization were cited as the most attractive aspects.
Additionally, participation in decentralized finance (DeFi) and yield opportunities have attracted more attention compared to the previous year, while concerns about the lack of correlation have diminished.
The study suggests that institutional investors in Europe and Asia are more accepting of digital assets in their portfolios than their US counterparts.
Ultimately, Bitcoin exchange traded funds (ETFs) and multi-digital asset funds, both actively and passively managed, emerged as the most attractive products among investors surveyed. European respondents also expressed interest in interest accumulation offers on digital assets. Fidelity Digital Assets also expressed the following:
The increased adoption reflected in the data demonstrates a strong first half for the digital assets sector. Although markets have faced numerous headwinds in recent months, we believe that the fundamentals of digital assets remain strong and that the institutionalization of the market over the past few years has positioned it to withstand recent events. Institutional investors are experienced in managing cycles, and the largely inherent factors they cited as attractive in this study will likely persist as the market emerges from this period.
Currently, the market’s largest cryptocurrency, Bitcoin, has regained the $60,500 threshold after a sharp drop of almost 20% from its all-time high of $73,700 on March 14 to $56 000 dollars on Wednesday.
Featured image from Shutterstock, chart from TradingView.com
