Survey Shows 70% of Institutional Investors Plan to Buy Crypto in Near Term

July 22, 2021, 11:45 AM AEST - 3 months ago

A recent survey by Fidelity Digital Assets, a multinational financial services corporation, has revealed that 70 percent of institutional investors are interested in buying cryptocurrencies.

Vast Majority Will Own Crypto by 2026

According to the survey, seven out of 10 respondents plan to buy digital assets in the near future and 96 percent of them aim to do so by 2026.

The survey ranged across investment banks, hedge funds, endowments, family offices, and financial advisers. It’s worth noting that Fidelity is one of the first traditional financial services that embraced cryptocurrencies. 

The message is clear – institutional adoption is growing, at least according to Fidelity’s last year survey. In 2020, the company found that only 36 percent of institutional investors would dare to invest in digital assets, and only 27 percent of US-based institutions had invested in Bitcoin and Ethereum.

Covid-19 Outbreak Was the “Catalyst for Investors”

Tom Jessop, president of Fidelity, said the pandemic was the catalyst for many institutional investors to look out for alternative assets while the traditional market was collapsing. 

The pandemic – and fiscal and monetary measures in response to it – has been a catalyst for many institutional investors to define their investment thesis and operationalise it.

Tom Jessop, president, Fidelity Digital Assets

A total of 1,100 institutional investors from across Asia, Europe and the US were surveyed. Interestingly, it appears that Asian investors had more exposure to the crypto market compared to North American and European institutions.

Yet some institutions remained sceptical, expressing fear of market manipulation and high volatility.

Corporate Crypto Conversion

As more institutions explore crypto and blockchain technology, it seems natural that clients would want insightful knowledge about the crypto market. According to a recent report, 26 percent of financial advisers would recommend cryptocurrencies to their clients in the next year.

Australians are leading the way when it comes to adoption. Earlier this year, Crypto News Australia reported that more than 5 million Aussies will own crypto by the end of 2021.

Additionally, 40 percent of millennials and 31 percent of Gen Zs favour digital assets over real estate, and the average Aussie crypto investor has 12.5 percent of total assets in crypto.

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