Institutional investors are noticing appeal in digital assets and many are planning to invest in them in the next five years. That’s what shows a study by Fidelity Investments. According to it, 22% of institutional investors already have some crypto exposure on the investments made in the last three years.
The survey heard 400 institutional investors in the United States. Such include pension funds, family consulting (family offices), hedge crypto funds and traditional ones among others. More than half of them anticipates digital assets as part of their portfolios.
However, the way they prefer to keep the investment varies. Most of them, 72%, is more inclined to buy investment products that have crypto assets. Still, 57% are inclined to buy crypto directly. And the same percentage is willing to buy an investment product that has companies of digital products. It is worth remembering that the respondents could report more than one option.
Thus, the investment in crypto passes through a stage of maturation, with greater acceptance by traditional financial institutions. More institutional investors are investing in digital assets, either directly or by service providers.
Among the reasons mentioned by investors for the attractiveness on crypto investment are innovation and low correlation with other assets. In addition, financial advisors and family consultancy firms (family offices) see digital assets more favorably.
Obstacles and positive forecasts
Not all in rosy, however. Some of the barriers mentioned by the people who responded to the surveys were the volatility, lack of regulatory clarity, limited history and lack of rationale. Yet, according to the President of Fidelity Digital, Tom Jessop, price volatility tends to decrease as the market matures. Jessop pointed out that risky investments in the sector continue to grow at a healthy pace. And he´d also mentioned the increasing offerings of security tokens.
It is worth remembering that Fidelity is a traditional player in the American financial market. The company started this year a service of cryptocurrency custody, perceiving value in this market. The company is also looking for insights into the sector´s evolution.
In addition, Fidelity’s survey is published simultaneously to the statement made by Fundstrat´s technical strategist, Robert Sluymer, that Bitcoin is in the midst of a sustained recovery, as it´s been negotiated by its highest price over the last six months,. In an article published on Investopedia, he claims to see the recovery of the bitcoin from its moving average of 200 weeks. Thus, this signals the early stages of a long-term recovery.