Posted 8 months ago | by Catoshi Nakamoto
According to a report by Fidelity Digital Asset Investments, 84% of institutional investors in the U.S. and Europe are interested in investing in crypto, while most see positive effects from an ETF (Exchange Traded Fund.)
The report entitled: “Fidelity Digital Assets’ 2021 Institutional Investor Digital Assets Study,” shows increasing bullish sentiment amongst institutional investors when it comes to digital assets.
A massive — 84% — of American and European institutional investors expressed interest in investment vehicles with exposure to digital assets like an ETF. Speaking of an ETF, 44% of investors stated that a Bitcoin ETF, which has yet to be approved by the SEC, would be a favorable investment.
“The interest expressed in both owning digital assets directly or through a variety of investment products is yet another indicator of the maturation of digital asset markets, the diversity of participants and progress in how these investors are viewing digital assets’ role in portfolios,” said Tom Jessop, president of Fidelity Digital Assets, in the report. “We’ve reached an inflection point where many institutions are deepening their commitment to the space and seeking new investment opportunities to express that interest in portfolios – in some cases, looking to incorporate other digital assets in addition to bitcoin.”
The investors stated they considered crypto to be an “alternative asset,” while almost a quarter of those surveyed said that digital assets are an entirely independent asset class altogether. In terms of portfolio one third of those polled stated they hold crypto assets directly. Almost a quarter expressed they owned Bitcoin and one in five investors declared they hold the number two digital asset Etheereum.
Besides ventrue capitalist funds, shockingly U.S. family offices and financial advisors that were asked had the greatest exposure to Bitcoin and crypto which was an increase in adoption by 28% and 20%.
One-third of investors said they were interest in both single and multi-asset digital products.
“The data continues to show that institutional investors expect the digital assets industry to more closely mirror that of other asset classes – whether that’s multiple product types covering a variety of investment strategies or the ability to access digital asset investments through traditional financial firms,” said Peter Jubber, Managing Director, Fidelity Digital Funds.
As Bitboy Crypto previously reported, it’s worth noting that Fidelity Digital Assets recently expanded their research team 70% adding roughly 100 new employees to its staff to meet growing institutional demand for altcoins besides (BTC.)
Fidelity also recently partnered with TP ICAP and U.K. banking giant Standard Chartered to launch a new cryptocurrency exchange. So, Fidelity is all in when it comes to crypto digital assets, Reuters reported.
A previous Fidelity poll conducted in late June found that 71% of institutional investors polled were interested in digital assets. According to the survey, that’s a ratio of 7 in 10 institutional investors that expect to buy or invest in digital assets in the future, and if that’s not enough, more than 90% of those interested in digital assets expect to have an allocation in their institution’s or clients’ portfolios within the next five years.
Another study taken by Nickel Digital Asset Management backs Fidelity’s assessement that institutional investors are bullish. Nickel Digital Asset Management recently found that 82% of private institutional investors and asset managers are planning to increase their exposure to digital assets for the next three years, as Bitboy Crypto reported.
Last year, Fidelity released “BITCOIN INVESTMENT THESIS: BITCOIN’S ROLE AS AN ALTERNATIVE INVESTMENT” expressing that it was “inevitable that retail investors jump into Bitcoin,” at the time.
That’s not the only bullish sentiments expressed in the previous report. The report also indicated that institutional interest could increase Bitcoin’s market capitalization by up to $1.3 trillion by capturing just 10% of investments from the alternative investments and fixed income market valued at $13.4 trillion.
That’s just one single market the potential redistribution of money could flow into Bitcoin. Fidelity also argues that Bitcoin could capture 1% of the bond market which is approximately worth $50.3 trillion. If Bitcoin were to capture 1% of the bond market that would put Bitcoin up another $500 billion in market cap.
The report speculates that fewer bond yields could push asset managers further toward alternative assets like Bitcoin. If Fidelity’s optimistic predictions were to come true, Bitcoin’s total capitalization could increase to as high as $2 trillion dollars in market cap. If that comes to pass Bitcoin will mint another generation of millionaires.
Bitcoin is currently trading at [FIAT: $45,165.87] DOWN -0.8% in the last 24 hours according to Coingecko at the time of this report.