- According to a recent survey by Fidelity Digital Assets, institutional investors, including US pension plans, are increasingly inclined to invest in crypto assets, including Bitcoin.
- The survey covered various institutional investor segments, including financial advisors, family offices, hedge funds, endowments, foundations, and pension funds.
- Despite the positive sentiment, the survey also illuminated the concerns and barriers faced by institutional investors. Price volatility emerged as the most significant obstacle, with 50% of respondents citing it as their primary concern.
Recent survey reveals increasing interest in crypto assets among institutional investors, despite concerns about price volatility and other barriers.
Institutional Investors Dominate Crypto Adoption
The survey findings indicate a significant surge in institutional interest in crypto assets. Of the total respondents, 74% expressed their intention to buy or invest in digital assets in the future, a slight increase from 71% in the previous year. Notably, US high-net-worth investors showcased a substantial rise in their preference for crypto assets, with future interest surging from 31% to 74% year over year.
Concerns and Barriers to Crypto Investment
Despite the positive sentiment, the survey also illuminated the concerns and barriers faced by institutional investors. Price volatility emerged as the most significant obstacle, with 50% of respondents citing it as their primary concern. Other key concerns included the lack of fundamentals to gauge appropriate value (37%), security issues (35%), market manipulation (35%), and regulatory classification of certain coins as “unregistered securities” (33%).
Bitcoin ETFs Garner Strong Interest
The survey also explored the features of digital assets that institutional investors find most appealing. The potential for high upside, the opportunity for innovative tech investments, and the enablement of decentralization were cited as the most attractive aspects. Additionally, participation in decentralized finance (DeFi) and yield opportunities gained more attention compared to the previous year, while concerns about lack of correlation decreased.
Conclusion
The survey 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 appealing products among surveyed investors. The increased adoption reflected in the data speaks to a strong first half of the year for the digital assets industry. As of now, the largest cryptocurrency on the market, Bitcoin, has regained the $60,500 threshold after a steep drop of almost 20% from its all-time high of $73,700 on March 14 to $56,000 on Wednesday.
