A study compiled by the American multinational financial services corporation Fidelity Investments reported that a third of large institutional investors own a form of cryptocurrency. The highest level of interest came from Europe, followed by the United States.
Institutional investors choose cryptocurrencies
According to him report From Bloomberg citing the Fidelity survey, 36% of the 774 participants said they own digital or derivative assets. When broken down into smaller categories, the survey indicated that 27% of U.S.-based institutions had purchased cryptocurrencies. These included pension funds, investment advisers, traditional and digital hedge funds, and family offices.
It's worth noting that Fidelity asked the same question last year to 441 institutions based in the United States alone at the time, only 22% responded that they owned digital assets. In other words, the interest of the US-based institutions towards cryptocurrencies continues to increase.
"These results confirm a trend we are seeing in the market towards increased interest in accepting digital assets as a new class of investible assets," said Tom Jessop, president of Fidelity Digital Assets.
As expected, over 25% of participants have the largest cryptocurrency by market cap: Bitcoin. The second seed Ethereum coin ranks second at 11%. In the case of BTC, the 2020 survey numbers have increased substantially compared to the 2019 results. This could be attributed to its performance this year and especially during the COVID-19 pandemic.
Despite the fact that Bitcoin fell below $ 4,000 in March, it outperforms most traditional financial assets. BTC entered the year at $ 7,200 and is currently trading at $ 9,700, posting annual gains of almost 35%.
Europe is more interested in cryptocurrencies
Respondents from Europe in the 2020 survey showed even higher results. 45% of them indicated that they had allocated a portion of their digital asset investment portfolios.
As such, Jessop concluded that "Europe is perhaps more supportive and accommodating." He added that “this could be things that are happening in Europe at the moment, it has negative interest rates in many countries. Bitcoin may seem attractive because there are other assets that are paying profitability. ”
Negative rates in numerous European countries are in fact a growing trend, as recently reported. However, they are also infiltrating countries outside the Old Continent, which means that Bitcoin's role could continue to increase.
Institutional investors also responded that price volatility is the most important concern preventing Bitcoin from receiving further adoption.