Fidelity Announces that One Third of Institutions have Bought Crypto

Fidelity has organized a survey which reveals that more than one out of every three institutional investors around the world has a liking for crypto assets.

Fidelity conducted a survey of 774 institutional investors globally. Out of these, more than 33% have spent their money to get digital assets or derivatives.

Among the institutions surveyed, 36% have invested in crypto. Out of the 441 institutional investors surveyed from the US, only 27% have bought crypto. Although this looks better than 22% where the US is coming from based on last year’s data, institutions in Europe happen to be doing better as nearly half of the ones surveyed have bought crypto.

BTC and ETH are the major cryptos bought. But those holding BTC are more in number as it accounts for more than 25% of the investments. Institutions that invested in ETH are about 11%.

The survey covered the months of November to the beginning of March. It was done by Greenwich Associates for Fidelity. The statistics revealed here shows the position of companies to crypto assets before the crash on ‘Black Thursday’ when cryptocurrencies lost more than half of their values.

More spots than derivatives

Among the institutions that bought crypto, 6 out of every 10 preferred spot markets while the remaining 4 out of 10 went for derivatives.

Although there are still many more institutions yet to invest in crypto, 60% of them are positive that they will surely do so. Just 20% are yet to understand the relevance of buying crypto assets.

According to Tom Jessop of Fidelity:

“These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class.” 

Five years from now, more than 90% of the institutions that took the survey said they will dedicate nothing less than 0.5% of their investments to crypto assets.

Institutions anticipating to profit from crypto

Last month, Paul Tudor Jones said he was considering investing in Bitcoins. He was optimistic that it was a positive step to take when he said: “The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.”

Grayscale’s accumulation of Bitcoins has been overwhelming in recent months. In Q1 of 2020, it was 33% the value of new BTC mined that was acquired and as if that was not enough, the numbers increased to 1.5 times the rate mined from the last halving.

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