Most institutional investors expect to buy digital assets, study finds



© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

By Anna Irrera

LONDON (Reuters) – Seven in 10 institutional investors expect to invest in or buy digital assets in the future, although price volatility is the main barrier for new entrants, a study by Fidelity’s cryptocurrency business found.

More than half of the 1,100 institutional investors surveyed globally by Coalition Greenwich on behalf of Fidelity Digital Assets between December and April said they had digital asset investments.

Around 90% of those interested in investing in future said they expected their company’s or their clients’ portfolios to include digital asset investments within the next five years, the research found.

This included direct cryptocurrency investments or exposure through stocks of cryptocurrency companies or other investment products.

Those surveyed included high net worth investors, family offices, digital and traditional hedge funds, financial advisors and endowments.

Launched in 2018, Fidelity Digital Assets is the cryptocurrency business of Boston-based Fidelity Investments and offers institutional investors custody and execution services for assets such as bitcoin.

The company was one of the first mainstream financial services providers to embrace cryptocurrencies, which increasingly have attracted established financial institutions.

TP ICAP (LON:) the world’s biggest inter-dealer broker, late last month said it was launching a cryptocurrency trading platform with Fidelity and Standard Chartered (LON:)’s digital assets custody unit.

Despite the mainstream interest, cryptocurrency prices and trading volumes have slumped. has fallen around 50% since its high in April.

See also  What Bidenism Owes to Trumpism

The firms surveyed cited price volatility as the biggest obstacle for new investors, followed by the lack of fundamentals needed to assess value and concerns around market manipulation.

In a survey last month JPMorgan Chase & Co (NYSE:), found only 10% of institutional investment firms trade cryptocurrencies, with nearly half labeling the emerging asset class as “rat poison” or predicting it would be a temporary fad.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here