Despite the market collapse, Fidelity, a major provider of financial services, discovered that more institutions are now investing in cryptocurrencies.
According to the fourth annual Institutional Investor Digital Assets Study from Fidelity Digital Assets, which was released on Thursday, 58% of polled investors reported owning digital assets in the first half of 2022, representing a six percentage point rise year over year.
Fidelity Digital Assets President Tom Jessop said:
While the markets have faced headwinds in recent months, we believe that digital assets fundamentals remain strong and that the institutionalization of the market over the past several years has positioned it to weather recent events.
However, Asia had the most significant percentage of institutions claiming ownership of digital assets (69%). Although the statistics reflected an 11-point and a 9-point increase from one year earlier, respectively, that number was lower in Europe (69%) and the US (42%).
Moreover, both financial advisers and high-net-worth investors had a role in the increases in Europe and the US, which high-net-worth investors drove.
In addition, venture capital funds use digital assets the most on a worldwide scale (87%), followed by high-net-worth people (82%) and advisers (73%).
According to Chris Kuiper, head of research at Fidelity Digital Assets, institutional investors have just lately developed a grasp of the technology and value proposition of digital assets despite the market downturn.
He continued by saying that the expansion of infrastructure and investment options for institutions has probably also contributed to the greater adoption rates.
Furthermore, a growing appreciation for Cryptocurrencies is indicated by a Fidelity study. Compared to 23% in 2021, almost 35% of respondents now think digital assets should be treated as a separate investment class.
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Chris Kuiper said:
This is one of many data points that validate trends we’re seeing within our own business: increased institutional participation and acknowledgment of the maturation of the digital asset market and infrastructure.
Nevertheless, 74% of the institutions polled stated that they want to purchase digital assets in the future. Financial advisers, family offices, pension funds, crypto hedge funds, venture capital funds, endowments, and foundations all continued to choose to purchase in the future year over year.