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November 01, 2022 at 03:49 PM
What You Need to Know
- Eighty-eight percent of institutional investors surveyed said they find characteristics of digital assets appealing.
- Those who have not yet invested in digital assets say price volatility is the biggest barrier.
- More than 80% of survey participants said that digital assets should be a part of an investment portfolio.
Institutional investors continue to be interested in digital assets despite turbulent market conditions, according to a recent survey from Fidelity Digital Assets.
Fifty-eight percent of institutional investors in the poll reported that they were invested in the first half of the year, up 6 percentage points year over year.
Although digital asset ownership is higher among Asian investors than those in the U.S. and Europe (69% vs. 42% and 67%), ownership in the U.S. grew by 9 points since 2021 and by 11 points among Europeans.
In both regions, high-net-worth investors largely drove the increase, as did financial advisors in Europe. Globally, 82% of wealthy investors use digital assets, as do 87% of crypto hedge funds and venture capital funds and 73% of financial advisors.
“The increased adoption reflected in the data speaks to a strong first half of the year for the digital assets industry,” Tom Jessop, president of Fidelity Digital Assets, said in a statement.
“While the markets have faced headwinds in recent months, we believe that digital assets fundamentals remain strong and that the institutionalization of the market over the past several years has positioned it to weather recent events.”
According to the study, 88% of institutional investors surveyed said they find characteristics of digital assets appealing, up 5 points among U.S. institutional investors and 2 points among Europeans, while holding steady in Asia.
What do they like about digital assets? High potential upside, innovative tech play and enabling decentralization. Overall, 51% of institutional investors reported a positive perception of digital assets, up from 45% in 2021.
Coalition Greenwich conducted the survey between Jan. 2 and June 24 among 410 institutional investors in the U.S., 359 in Europe and 283 in Asia, including family offices, digital and traditional hedge funds, pensions and defined benefit pensions, financial advisors, endowment and foundations and high-net-worth investors
Digital Assets in an Institutional Portfolio
As the digital assets market and ecosystem continues to mature, fewer institutional investors now view digital assets as an alternative asset class, particularly in the U.S. and Asia. Moreover, 35% of respondents believe digital assets should be viewed as an independent investment class, up from 23% in 2021.
