It’s time to get hard-core bullish!
The latest report by the investment giant Fidelity that has entered the crypto space with its Fidelity Digital Assets has shared interesting and bullish research that states institutions are very much active in the crypto space and in the next five years, it will further increase.
Conducted by Greenwich Associates, the research took place between the period of November 2018 and February 8, 2019, that covered 441 institutional investors in the US. The time period involved is of importance here as well as this has been at the time when Bitcoin was already down about 70 percent and further dropped to its yearly low.
Institutions ‘overwhelmingly Favorable’ about Appealing Characteristics
The research finds that institutional investors are “overwhelmingly favorable” about the appealing characteristics such as technology and low correlations to other assets of the digital assets.
- About half of respondents (47%) appreciate digital assets as an innovative technology play
- 46% find digital assets’ low correlation to other assets among the most appealing characteristic
- Financial advisors (74%) and family offices (80%) view the characteristics of digital assets most favorably
Source: Fidelity Digital Assets
Four in Ten Open to Future Investment in Cryptos
The survey reveals that about 22 percent of institutional investors already have some sort of exposure to digital assets. Most of the investments have been made within the past three years only.
However, the future is bright as four in ten respondents say they are open to future investments in digital assets over the course of the next five years.
But what's most interesting is nearly half that is 47 percent of the institutional investors view digital assets as something that has a place in their investment portfolios.
In response to his huge number of institutional investors interested in cryptos, Bitcoin bull Tom Lee says, “@DigitalAssets (Fidelity) carries institutional credibility that will help many of these institutions to make that crossover.”
However, the preference to hold digital assets vary, with 76 percent of institutions survey stated security and safety as the most important considerations when considering custodian services.
The momentum is building!
The interest is ever growing from different fields as the company has been seeing interest from endowments, pension, foundations, and family offices over the past several months.
The research also reveals that institutions are more aware of regulatory and investment developments more than they were six or twelve months ago.