- Institutionals are interested in cryptocurrency
- What drives investors to bitcoin
- High-quality services are needed to support the trend
One third of large institutions already invested in bitcoin
Fidelity surveyed over 800 investment companies
About 25% invested in bitcoin, yet 11% named Ethereum
Investors are more likely to participate in derivatives transactions compared to 2019 year
More than a third of large institutional investors have added digital currency, such as bitcoin to their asset portfolios, says the last Fidelity report.
Institutionals are interested in cryptocurrency
Based on the results of a survey conducted by one of the largest asset management companies – Fidelity, the vast majority of investors are interested in digital assets.
Poll in which we participated nearly 800 investors from USA and Europe, showed, what about 80% of institutions find the new asset class attractive. Wherein more a third have already invested directly or indirectly in this market.
Fidelity conducted the survey from November 2019 to early March 2020, completing him just before global markets were gripped by the COVID-19 crisis hitting the economy and healthcare.
What drives investors to bitcoin
Tom Jessop, president of Fidelity Digital Assets, said the survey was held prior to the publication of a letter from well-known investor Paul Tudor Jones, in which he talks about investing in bitcoin to hedge against inflation.
Research Director at Fidelity Digital Assets Ria Bhutoria stated on tuesday that’s unconventional monetary policy central banks, aimed at stimulating the economy, forced investors to seek new ways to preserve wealth by pushing them towards digital assets. According to her, investors in particular are attracted by the lack of correlation of digital assets and the high potential for growth.
Share of US investors owning digital assets grew in this year to 27% compared to 22% in 2019. Topics at least when investing in this market institutions face many obstacles, including price volatility, lack of fundamentals to accurately assess value, and market manipulation.
Quality services are needed to support the trend
Ria Bhutoria noted that the current interest in bitcoin, due to macroeconomic reasons, can turn out to be short-lived, if service providers won’t offer tools for overcoming these barriers.
Such cryptocurrency firms like BitGo and Genesis Global Trading recently announced new high quality services, which help investors navigate the market. Co his parties, Fidelity Digital Assets offers professional investors contract execution and asset custody services.
According to the survey, it is also growing number investors who use derivatives. Percentage of American investors with access to futures on cryptocurrency, grew from 9% in 2019 year up to 22% in 2020 year.
CME Group Bitcoin futures have achieved impressive results over the past year, with open positions exceeding $ 500 in early May million. Possibly Chicago Mercantile stock exchange Is the best indicator of institutional activity in the bitcoin derivatives market, given that traditional hedge funds are already actively trading on markets.
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