A recent study by Fidelity Digital Assets indicates that 71% of institutional investors plan to buy or invest in digital assets in the future.
According to the study, Fidelity Digital Assets expects institutional interest to continue to grow in time. The report indicates that seven out of ten institutional investors will be looking to buy digital assets in the future. Furthermore, over 90% of those interested in buying digital assets in the future, will expect to have an allocation in their institutions or clients’ portfolios within the next five years.
Fidelity Digital Assets’ 2021 Institutional Investor Digital Assets Study confirmed the increasing interest in digital assets between institutional investors. With the report stating, “This forecast indicates a continued acceleration in adoption over the next several years as slightly more than half (52%) of institutions surveyed across Asia, Europe and the U.S. currently invest in digital assets.”
The report states that adoption in Asia is currently higher than any other continent, sitting at 71%. However, an increase in Europe and the U.S. has been noted since last year.
President of Fidelity Digital Assets, Tom Jessop, attributes the growing interest to a maturing market. “The increased interest and adoption we’re seeing is a reflection of the growing sophistication and institutionalization of the digital assets ecosystem,” Jessop stated.
Jessop also attributed the growing interest to the Covid-19 pandemic. As well as “fiscal and monetary measures in response to it – has been a catalyst for many institutional investors to define their investment thesis and operationalize it” he clarified.
Digital asset interest continues to grow
The report states that price volatility in the markets is the main barrier to adoption. Lack of fundamentals to determine value is also one of the concerns between institutions. However, nearly eight in ten institutional investors still believe that digital assets should be included in investment portfolios.
The number of European investors who agree with this has climbed to 77%, up two-thirds from the previous year. While 69% of U.S. investors feel the same way. Up 5% from the previous year.