A Fidelity survey of 774 institutional investors found that more than a third of companies worldwide have invested in digital assets or derivatives.
While 36% of institutions own crypto currencies globally, the multinational financial services company, Fidelity, found that only 27% of the 441 US institutions surveyed are open to crypto currencies, although that’s a 22% increase compared to last year, nearly half of European institutions have many virtual assets.
Bitcoin (BTC) is the most popular investment in cryptomonies, with more than a quarter of respondents with BTC, while 11% of companies own Ether (ETH).
Fidelity commissioned, Greenwich Associates, to conduct this survey from November to early March, with the data reflecting the companies‘ positions on cryptomonies before the violent „Black Thursday“ crash that brought down cryptomonies prices by 50% or more.
Japanese Company Introduces New Privacy Feature for Bitcoin Wallets
Institutions prefer cash to derivatives
More than 60% of the institutions that are open to crypto-currencies have bought on the spot markets, and the other 40% opt for derivatives.
While many institutions have yet to make a decision on cryptomonies, 6 out of 10 respondents now „believe that digital assets have a place in their investment portfolio,“ only 20% of participants indicated that they find nothing attractive about crypto assets.
Tom Jessop of Fidelity stated: „These results confirm a trend we are seeing in the market towards increased interest and acceptance of digital assets as a new investment asset class.
Looking five years ahead, 91% of respondents indicated that they expect at least 0.5% of their portfolio to be composed of crypto assets.
A German stock exchange will list a Bitcoin ETP
The institutions‘ appetite for cryptomoney is growing
In early May, billionaire hedge fund founder Paul Tudor Jones indicated that his Tudor BVI fund may have a low, single-digit percentage of its portfolio in BTC, stating: „The best strategy to maximize profits is to have the fastest horse.
In recent months, we’ve also seen Grayscale, a Bitcoin investment fund, aggressively increase its BTC buildup, from absorbing at a rate equal to 33% of newly mined bitcoins during Q1 2020, to currently have approximately 1.5 times the rate of new supply since halving occurred.