- Fidelity Digital Assets Vice President, Manuel Nordeste, reveals a growing interest among investors in spot Bitcoin ETFs.
- According to Nordeste, those planning for retirement are gradually warming up to the idea of investing in crypto assets.
- Defined benefit plans and other retirement funds have begun discussing crypto assets with their investment committees.
Retirement planners are increasingly considering crypto investments, with Fidelity Digital Assets identifying a potential $4.7 trillion opportunity.
Retirees Examining Crypto Investments, Fidelity Sees $4.7 Trillion Opportunity
Speaking at an event in London, Nordeste revealed that defined benefit plans and other retirement funds have started discussing crypto assets with their investment committees. While the crypto market has largely been dominated by small-scale but sophisticated investors like family offices and high-net-worth individuals, larger institutional investors are beginning to show interest.
Fidelity Digital Assets Attracting Larger Institutional Investors
Nordeste noted that Fidelity Digital Assets, established in 2018, initially attracted the interest of family offices, private asset managers, and hedge funds. However, it has now begun interacting with larger institutional investors and companies. A survey conducted by Fidelity Digital Assets revealed that 80% of high-net-worth individuals view digital assets favorably, compared to just 23% of retirement plans.
Conservative Retirement Funds Show Cautious Approach to Volatile Crypto Market
Known for their conservative strategies, retirement funds are showing a cautious approach to the volatile crypto market. Nordeste explained that smaller firms could be more agile and take more risks due to their flexible investment powers, unlike pensions, which require more time and specific market conditions.
BlackRock Expects Institutions to Begin Trading in Bitcoin Spot Market
Fidelity’s competitor, BlackRock, recently announced that it expects institutions, including retirement funds, to begin trading in the Bitcoin spot market through exchange-traded fund (ETF) products approved by the US Securities and Exchange Commission in January.
Conclusion
As the crypto market continues to mature and gain legitimacy, more institutional investors, including retirement funds, are beginning to consider it as a viable investment option. This trend could potentially unlock a multi-trillion dollar opportunity for the crypto market. However, the volatile nature of the market and the cautious approach of these funds suggest that this transition might take some time.
