Fidelity Research Suggests that 50% of Institutions are Crypto-friendly
By Mark Lemon – Cryptocurrency Professional
Fidelity Investments have recently released a survey report that suggests 50% of institutions are friendly towards cryptocurrencies, blockchain and even buying and selling Bitcoin due to some of their attractive characteristics.
Out of the many institutions that responded, 47% appreciated that digital assets are an innovative technology play. They believe buying and selling Bitcoin online with its advantages could be incorporated into their infrastructure for greater efficiency. The low correlation to other assets was also cited as a positive characteristic as the economics of chains function independently to others.
Value is mainly derived in the concept of the project and what the digital asset can achieve as an alternative. Both financial advisors and family offices were stated in the survey to favour the characteristics the most with 74% and 80% respectively. Many financial institutions already know the benefits and speed of cashing out crypto to cash as opposed to traditional stocks and shares.
The survey goes on to state that 22% of institutional investors have already gained some exposure to cryptocurrencies with four in ten suggesting they are interested in future investments over the next five years. We could see a lot more crypto selling and buying as adoption of the technology increases and more types of institutions gain exposure.
47% of the institutional investors surveyed see digital assets as having a place in their investment portfolio, yet 76% place security and safety as the most important consideration when looking at custodians. Without solid institutional grade infrastructure in place for the safekeeping of assets, many institutions may not expose themselves to buy or sell cryptocurrency.
The research suggests that institutions have an appetite for investing in cryptocurrencies but are still concerned with volatility and security. With further development of the infrastructure for greater protection of users’ assets, we could see more institutions exposing themselves and acquiring cryptocurrency.
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