Most Institutional Investors Expect to Buy Digital Assets, Study Finds


LONDON, July 20 (Reuters) – Seven in ten institutional investors plan to invest or buy digital assets in the future, although price volatility is the main obstacle for new entrants, according to a study by the Fidelity’s cryptocurrency activity.

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

About 90% of people interested in investing in the future said they expect their company’s or client’s portfolios to include investments in digital assets within the next five years, according to the research.

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

Interviewees 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 provides institutional investors with custody and execution services for assets such as bitcoin.

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

TP ICAP (TCAPI.L), the world’s largest cross-industry brokerage, announced late last month that it was launching a cryptocurrency trading platform with Fidelity’s digital asset custodian and Standard Chartered. Read more

Despite the general interest, cryptocurrency prices and trading volumes have collapsed. Bitcoin has fallen about 50% since its high in April.

Respondents cited price volatility as the biggest hurdle for new investors, followed by a lack of the fundamentals needed to assess value and concerns about market manipulation.

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

Reporting by Anna Irrera; edited by Barbara Lewis

Our Standards: Thomson Reuters Trust Principles.

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