Seven out of ten institutional investors expect to invest in bitcoin (BTC) and other cryptocurrencies in the future, according to a global survey by Fidelity Digital Assets. The volatility in the price of cryptocurrencies, however, is perceived as a barrier for new entrants in that space, according to the study.
More than half of the European institutional investors surveyed, and 33% of those surveyed in the United States, claimed they already have some kind of investment in cryptocurrencies, according to the Fidelity Digital Assets report. Respondents included high-net-worth investors, family offices, digital and traditional hedge funds, as well as financial advisers and endowment funds, the document notes.
90% of those interested in investing in the future expect their companies or their clients’ portfolios to include cryptocurrencies in the next five years, according to the report’s findings.
The increased interest and adoption we are seeing is a reflection of the increasing sophistication and institutionalization of the digital asset ecosystem. The pandemic, and the fiscal and monetary measures in response to it, have been a catalyst for many institutional investors to define their investment thesis and make it operational.
Tom Jessop, President of Fidelity Digital Assets.
Obstacles to greater bitcoin adoption
Among the obstacles to further bitcoin adoption, price volatility remains the main barrier to adoption, according to the majority of respondents. Then the lack of knowledge of the fundamental parameters that would allow cryptocurrencies to be valued, and the concerns around market manipulation are mentioned, the study says.
The pandemic has been a catalyst in attracting institutional investors to cryptocurrencies.
Fidelity Digital Assets has conducted research on various scenarios of the inclusion of bitcoin in portfolios of traditional assets, as reported by CriptoNoticias at the beginning of last March.
On the other hand, Fidelity requested authorization from the United States Securities and Exchange Commission (SEC) for the launch of a bitcoin exchange-traded fund (ETF), a fact also reported here.