A study of 774 institutional investor across the US and Europe by Fidelity Digital Assets reveals that more than a third of surveyed investors own crypto assets.
According to a report published on Businesswire on Tuesday June 9th, the survey was conducted in association with Greenwich Associates on behalf of Fidelity Digital Assets and the Fidelity Center for Applied Technology between November 18, 2019 and March 6, 2020.
The survey involved 774 institutional investors, 391 in the US and 381 in Europe. The survey studied a range of business including pensions, family offices, digital and traditional hedge funds, financial advisors and endowment and foundations.
According to the survey, nearly 80% of the surveyed institutional investors see the appeal of digital assets. 36% of the respondents (27% in the U.S. and 45% in Europe) have already invested in crypto assets.
This is 5% increase in US investors allocated to digital assets in 2019. Crypto hedge and venture funds hold the top spot in digital asset ownership. But the financial advisor, high net worth individual, and family office segments also has significant contribution in this regard.
Of these 36% investors, 25% holds bitcoin and 11% ether. The study further said that of all U.S. and European investors who own digital assets, over 60% buy digital assets directly.
The publication, about the appeal of digital assets, reads:
“Almost 80% of institutional investors find something appealing about digital assets, with the three almost equally compelling characteristics across U.S. and European investors being: uncorrelated to other asset classes (36%); an innovative technology play (34%); and high potential upside (33%). Amongst U.S. respondents, the portion of investors who find appealing characteristics in digital assets grew by six percentage points to 74% this year. European investors are even more positive on digital assets with 82% finding something appealing.”
The survey finding further reveal that 6 in 10 investors believe digital have a place in their portfolio. 40% investor believe digital assets belongs to an alternative asset class, while 20% say they belong to an independent asset class.
The study also cites factors that are slowing down institutional adoption. They include price volatility, concerns around market manipulation, and lack of fundamentals to gauge appropriate value. But, among US investor, as compared to last year, strength of these concerns has dropped down significantly.
Tom Jessop, president of Fidelity Digital Assets, about the survey results, commented:
“These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class. This is evident in the evolving composition of our client pipeline, which spans from crypto native funds to pensions.”
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