Institutional Investments In Blockchain Cryptocurrency Likely To Rise

According to research from Fidelity Investments, Institutional investment in cryptocurrency would mostly increase over a large extend.

Research

The firm had surveyed over 441 institutional investors. The institutions included pensions, hedge funds, financial advisors and endowments. The firm determined the investment outlook for Bitcoin and cryptocurrencies.

Fidelity investments has assets under management over $2.5 trillion and is the fifth largest asset manager. The firm had released the research earlier this week.

Perception over Cryptocurrency

The general perception and idea about cryptocurrency is changing. Companies have begun to consider the technology as innovative and appealing. Financial advisers and family offices were mostly receptive to the technology, with almost three quarter considering it most favorable.

Even when there were up votes investors also criticized the volatility and an unclear regulation and expressed their concerns during investing. However, it seems that as infrastructure and awareness grow in the sector, so too does institutional investment. And, the trend seems unlikely to stop.

According to research from Fidelity Investments, Institutional investment in cryptocurrency would mostly increase over a large extend.

Seekers

The Survey result points that nearly 22% of the respondents have purchased the digital currency. This is a remarkable increase from 2016’s ~0 percentage.

Another 18% plans on investing in crypto in the next five years. And another 47% view digital assets as having a place in their investment portfolios.

“We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge funds, to traditional institutional investors like family offices and endowments. More institutional investors are engaging with digital assets, either directly or through service providers, as the potential impact of blockchain technology on financial markets—new and old—becomes more readily apparent.”

Tom Jessop, president of Fidelity Digital Assets, the firm’s crypto division

Way Of Investing

Of the different ways to invest, the survey indicated that majority of the institutions prefer (72 percent) purchasing investment products that hold or represent digital assets, such as futures. Meanwhile, purchasing cryptocurrency directly or buying equity in digital asset-related companies were both favorable to more than half of respondents (57 percent).

According to research from Fidelity Investments, Institutional investment in cryptocurrency would mostly increase over a large extend.

“Venture investment in the sector continues at a healthy pace, complemented by an increasing number of security token offerings (STOs), and the global regulatory environment remains cautiously constructive. Another indication of a growing ecosystem around digital assets is high transaction activity on the Bitcoin blockchain. Institutions are more aware of these developments now than they were six or twelve months ago, which is a positive sign for continued interest and adoption.”

Tom Jessop, president of Fidelity Digital Assets, the firm’s crypto division

Institutional investment in cryptocurrency can encourage more and more people to allow the new technology to reveal itself. The technology will be adopted at a greater pace by people if this occurs and the value of the cryptos can also soar high if large amount flushes into the popular cryptos.