74% of institutional investors intend to buy digital assets, details inside

Even though Bitcoin is currently trading at just over $20,000, 70% below its all-time high of $69,044, institutions continue to remain bullish. 58% of institutional investors invested in cryptocurrency and other digital assets in the first half of 2022, up 6% from last year.

The discovery above is among the latest Institutional Investor Digital Asset Study released by Boston-based investment firm Fidelity Digital Assets.

74% of institutional investors intend to buy digital assets in the future. 51% of them have a positive view of the crypto market, compared to 45% in 2021.

Investors in Asia own more digital assets (69%) than those in Europe (67%) or the US (42%). Europe saw an 11-point increase in ownership, while the United States saw a nine-point increase since 2021. This upward trend was mainly driven by high net worth investors in these two regions, in addition to financial advisers. in Europe.

“While markets have faced headwinds in recent months, we believe the fundamentals of digital assets remain strong and the institutionalization of the market over the past few years has positioned it to weather recent events. Institutional investors are experienced in managing through cycles, and the largely inherent factors they cited as attractive in this study will likely remain as the market emerges from this period,” said Tom Jessop, President of Fidelity Digital Assets.

Technological innovation and decentralization are the two most promising features catching investors’ attention, respondents said.

35% believe digital assets should be considered an independent investment class, up from 23% in 2021.

Consistent crypto holdings during the crash

It should not be forgotten that the crypto industry experienced a stock market crash in the second quarter of this year, following the collapse of the Terra stablecoin system.

It is in such circumstances that these institutions have continued to invest their money. The fact that these investors have very deep pockets helps.

One such example is that of the American software company MicroStrategy. He currently holds 130,000 BTC, worth $3 billion.

It was during the same period that traditional investors withdrew hundreds of millions of dollars from Bitcoin funds.

The above survey included 1,052 institutional investors from the United States, Europe and Asia. Institutional investors here refer to hedge funds, financial advisors and high net worth individuals.

It should be noted that the survey period of the report ends in June. We must also observe the behavior of these investors during the remaining part of the year and then, possibly, come to a conclusion.