One Third of Institutions Have Invested in Crypto Says Fidelity

Cointelegraph By Samuel Haig

A Fidelity survey of 774 institutional investors found that more than one-third of firms worldwide have invested in digital assets or derivatives.

While 36% of institutions own crypto globally, multinational financial services company  Fidelity found that only 27% of the 441 U.S. institutions surveyed are exposed to crypto — although that’s up from 22% last year. Close to half of European institutions are long on virtual assets.

Bitcoin (BTC) is the most popular cryptocurrency investment, with more than a quarter of respondents holding BTC, while 11% of firms own Ether (ETH).

Fidelity commissioned Greenwich Associates to conduct the survey from November until early March — with the data reflecting the crypto positions of firms as of before the violent ‘Black Thursday’ crash that saw crypto prices drop by 50% or more.

Institutions prefer spot to derivatives

More than 60% of institutions who are exposed to crypto have purchased on the spot markets, with the other 40% opting for derivatives. 

While many institutions are yet to pull the trigger on crypto, six in 10 respondents now “believe digital assets have a place in their investment portfolio”. Only 20% of participants indicated that they do not find anything about the crypto asset class appealing.

Fidelity’s Tom Jessop stated: “These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class.” 

Looking five years into the future, 91% of respondents indicated that they expect at least 0.5% of their portfolio to comprise crypto assets.

Institutional appetites for crypto surge

In early May, billionaire hedge fund founder Paul Tudor Jones indicated that his Tudor BVI fund may hold a low single-digit percentage of its portfolio in BTC, stating: “The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.”

Over recent months we have also seen Grayscale’s Bitcoin Investment Trust aggressively ramp up its BTC accumulation — going from absorbing at a rate equal to 33% of newly mined Bitcoin during the first quarter of 2020 to roughly 1.5 times the rate of new supply since the halving.

Office Address
240 Kent Ave, Brooklyn,
NY 11249
Working Hours
Mon-Fri : 10am to 5pm EST
Saturday & Sunday: Closed
For All Forms Of Inquiries
Phone: +1 855-558-6580
Email: Support@paydepot.com