Institutional investment in cryptocurrency is likely to increase over the next five years, regarding to analyze from Fidelity Investments. The firm surveyed 441 institutional investors-including pensions, hedge money, and endowments-to determine the investment view for bitcoin and other cryptocurrencies. 2.5 trillion in resources under management. ON, MAY 2nd, the company released research which surveyed 441 US institutional investors, including-pensions, hedge funds, financial advisors, and endowments to determine their outlook on buying crypto.
Based on results from the survey, 22 percent of respondents have purchased cryptocurrency. More promising is that four out of ten respondents are available to future investments in cryptocurrency within the next five years. If opinion remains unchanged, which means that institutional traders could increase by up to 18 percent over the next five years.
Additionally, nearly fifty percent of institutional traders (47 percent) view digital possessions as having a place in their investment portfolios. The info appears to reveal that institutional curiosity about crypto and bitcoin is increasing. “We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge funds, to traditional institutional traders like family endowments and offices.
Of the various ways to get, the survey indicated that institutions choose (72 percent) purchasing investment products that keep or signify digital assets, such as futures. Meanwhile, purchasing cryptocurrency directly or buying collateral in digital asset-related companies were both beneficial to more than half of respondents (57 percent). “Venture investment in the sector continues at a healthy speed, complemented by an increasing variety of security token offerings (STOs), and the global regulatory environment remains cautiously constructive.
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Another indicator of a growing ecosystem around digital assets is high purchase activity on the Bitcoin blockchain. The bias towards purchasing investment products could stand for a different concern in the industry-custody. Having less readily available custody solutions means that institutional investors either need to defend myself against extreme risk via self-custody or forgo buying crypto.
According to the survey, 18 percent of respondents use third-party custodians, 13 percent perform self-custody, and 6 percent use non-custodial exchanges. This is one of the issues that Fidelity Digital Assets intends to deal with as an institutional custodian. Based on the firm’s white paper, self-custody for institutions is not palpable because of the regulations and legal obligations that large finance institutions must adhere to.