Rise in digital asset interest set to continue
03 May 2019 Boston
Image: Shutterstock
The number of institutional investors interested in digital assets has increased with more set to invest over the next five years, according to Fidelity Investments.
Fidelity’s research, where more than 400 US institutional investors were surveyed, showed that 22 percent of institutional investors already have some exposure to digital assets, with most investments having been made within the past three years.
Meanwhile, four in 10 respondents suggested that they are open to future investments in digital assets over the next five years.
The research explained that many institutions showing interest in this space either own digital assets and need a custodian or they want to invest in digital assets, but first, need a custodian.
It showed that some 18 percent of US financial institutions are using third-party custodians and another 13 percent are carrying out self-custody.
The survey, which asked more than 400 US institutional investors, found a further 6 percent are using a non-custodial exchange.
Across all institutional segments, when considering a custodian for digital assets, 76 percent of
institutions surveyed placed security and safety as their most important considerations.
When gaining exposure to digital assets, investors said they prefer to deal with a traditional financial firm (37 percent) followed by dedicated crypto-focused financial firms
(24 percent).
Commenting on the findings, Tom Jessop, president of Fidelity Digital AssetsSM, said: “We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge
funds, to traditional institutional investors like family offices and endowments.”
He added: “More institutional investors are engaging with digital assets, either directly or through service providers, as the potential impact of blockchain technology on financial markets—new and old—becomes more readily apparent.”
Fidelity’s research, where more than 400 US institutional investors were surveyed, showed that 22 percent of institutional investors already have some exposure to digital assets, with most investments having been made within the past three years.
Meanwhile, four in 10 respondents suggested that they are open to future investments in digital assets over the next five years.
The research explained that many institutions showing interest in this space either own digital assets and need a custodian or they want to invest in digital assets, but first, need a custodian.
It showed that some 18 percent of US financial institutions are using third-party custodians and another 13 percent are carrying out self-custody.
The survey, which asked more than 400 US institutional investors, found a further 6 percent are using a non-custodial exchange.
Across all institutional segments, when considering a custodian for digital assets, 76 percent of
institutions surveyed placed security and safety as their most important considerations.
When gaining exposure to digital assets, investors said they prefer to deal with a traditional financial firm (37 percent) followed by dedicated crypto-focused financial firms
(24 percent).
Commenting on the findings, Tom Jessop, president of Fidelity Digital AssetsSM, said: “We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge
funds, to traditional institutional investors like family offices and endowments.”
He added: “More institutional investors are engaging with digital assets, either directly or through service providers, as the potential impact of blockchain technology on financial markets—new and old—becomes more readily apparent.”
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