According to a study by Fidelity Investments, about a third of the 774 institutional investors surveyed own bitcoin and other crypto assets.
Fidelity Investments conducted a survey of 774 European and American companies. According to its results, 36% of firms invested in digital assets or cryptocurrency derivatives. During the year in the US, the number of financial institutions that added cryptocurrencies to their investment portfolio increased from 22% to 27%. We are talking about pension funds, family wealth management companies, consulting and investment firms, as well as digital and traditional hedge funds. 45% of European respondents also invested in crypto assets.
11% of the surveyed companies hold ether, and more than a quarter prefer bitcoin. Tom Jessop, President of Fidelity Digital Assets, believes that European companies are more loyal to cryptocurrencies, considering them as a new attractive asset class. This may be due to negative interest rates and the coronavirus crisis, which has negatively affected traditional assets. “Classic” assets have ceased to bring profit, so the interest of financial organizations in cryptocurrencies is growing. As a result, firms working in the field of blockchain and cryptocurrencies began to offer new services designed specifically for institutional investors.
So, in March, BitGo launched a cryptocurrency lending service for financial institutions with support for BTC, ETH, LTC, BSH and DASH, and in January, the Huobi exchange introduced The huobi Brokerage platform for trading cryptocurrencies. However, the main factor hindering the widespread adoption of digital assets among institutions is the high volatility of cryptocurrencies.