Results of a new survey from Fidelity Investments indicate that institutional investors are keen to hold digital assets in their portfolios. The research found that 22 percent of institutional investors already hold digital assets in their portfolios, with most of these investments having been made within the past three years. This number is likely to increase over the next five years.
The study was undertaken as part of Boston-based Fidelity’s research to “better understand how institutions, advisors, and investors think about digital assets both overall, and as part of an investment portfolio”. With more than 400 US institutional investors surveyed, almost half of them view digital assets as having a place in their investment portfolios.
Pensions, family offices, crypto and traditional hedge funds, financial advisors and endowment and foundations were all involved in the survey, and the results vary on how they would want to hold these assets. 72 percent prefer to buy investment products that hold digital assets, 57 percent prefer to buy crypto assets directly and 57 percent prefer to buy an investment product that holds digital asset companies.
Institutional Investors Are More Aware Of Cryptocurrency Developments Than Ever Before
“We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge funds, to traditional investors like family offices and endowments,” said Tom Jessop, President of Fidelity Digital Assets, a provider of custody and trade execution services for digital assets to institutional investors.
The company says that institutional sentiment mirrors many of the positive developments within the space that they have observed. They claim that institutions are much more aware of developments and regulatory conversations now than they were one year ago.
More institutions are working on and developing their own investment positions. “More education is always welcomed now it seems, specifically by those who can describe digital assets and blockchain technology in terms that are familiar to these types of investors. We expect more investors will acknowledge the impact this new set of assets will have as we continue to develop this new era of wealth transfer and management”.