Most institutional investors likely to Invest in digital assets

July 23, 2021

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According to a study by cryptocurrency company ‘Fidelity Digital Assets’, seven out of ten institutional investors plan to invest or buy digital assets in the future, although price volatility is a significant challenge for new Investors.

More than half of the 1,100 institutional investors, surveyed by Coalition Greenwich on behalf of Fidelity Digital Assets in a global survey between December and April, said they are investing in digital assets.

The study found that nearly 90% of those interested in investing in the future said they expect their corporate or client portfolio to include investments in digital assets over the next five years.

This included direct investment in cryptocurrency or commitments through cryptocurrency stocks or other investment products.

The study included high net worth investors, family offices, digital and traditional hedge funds, financial advisors, and donations.

Fidelity Digital Assets, founded in 2018, is a cryptocurrency company for Boston-based Fidelity Investments that provides institutional investors with custody and supervision services for assets like bitcoin.

The company was one of the first mainstream financial service providers to adopt cryptocurrency, which attracted more and more reputable financial institutions.

The world’s largest middleman broker announced late last month that it will open a cryptocurrency trading floor with digital asset custody department Fidelity and Standard Chartered.

Despite the prevailing interest, cryptocurrency prices and trading volumes fell. Bitcoin has dropped about 50% since its peak in April.

Companies surveyed cited price volatility as a major obstacle to new investors, followed by a lack of fundamentals to gauge value and concerns about market manipulation.