Fidelity Digital Assets published its annual study on institutional investment in digital assets on October 27. The study concludes that the fundamentals of digital assets remain strong despite headwinds, but adoption remains highly uneven across investor types.
In its survey of 1,052 institutional investors from Asia, Europe and the United States, Fidelity found that digital asset adoption increased in the US and Europe by 9% and 11%, respectively, to 42% and 67%. Asia saw a slight decline in adoption but remained the leader, at 69% in any case.
One of the biggest jumps seen was in the future intentions of US high net worth investors: 74% of investors in this category plan to buy or invest in digital assets in the future, up from 31% last year (2021). ). In general, that indicator increased from 71% to 74%. Fidelity Digital Assets Chairman Tom Jessop commented in the report:
“Institutional investors have experience managing through cycles, and the largely inherent factors they cited as attractive in this study will likely hold as the market emerges from this period.”
The report’s most dramatic finding may be the large gap in adoption between investor types. High net worth investors, hedge/venture capital funds, and financial advisors show a much higher affinity for digital assets than family offices, pension/defined benefit plans, traditional hedge funds, and endowments and foundations. So while 82% of high-net-worth investors “currently buy/invest in digital assets,” that figure drops to 7% for traditional hedge funds and 5% for pension funds.
Fidelity is very bullish on cryptocurrencies. Fidelity Digital Assets announced 100 new hires on October 20, to bring its staff to 500 by the end of the first quarter of 2023. It also started Ether (ETH) custody and trading services, which will start on October 28. Fidelity announced its intention to offer 401(k) retirement plans with Bitcoin (BTC) exposure to Americans in March.
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