Institutional investors expect to buy digital assets study finds

A new study from Fidelity Digital Assets reveals that more than half of survey respondents already hold digital assets

Institutional investors expect to buy digital assets study finds
Steve Randall

Institutional investors consider the addition of digital assets in the portfolios are almost inevitable according to a new report.

A survey of more than 1,100 institutional investors globally found that 90% expect to buy digital assets within the next 5 years with more than half having done so already.

The study by Coalition Greenwich for Fidelity Digital Assets found that these assets would include direct holdings of cryptocurrencies along with stocks or other investment products to gain exposure to the crypto industry.

Survey participants included high-net-worth individuals, family offices, hedge funds, endowments, and financial advisors.

Fidelity Investment’s digital assets business is part of the US-based firm’s commitment to cryptocurrencies which includes a joint venture with Standard Chartered’s Zodia Custody and interdealer broker TP ICAP.

The platform will have offices in London, New York, and Asia.

“This platform will provide our global client base with the trading infrastructure, connectivity, surveillance, and market standards they require as a minimum across traditional markets whilst also recognising the nuances of this new asset class,” said Andrew Polydor, global head of markets at TP ICAP. “It leverages mature trading technology developed by our partners GMEX Technologies, to provide spot liquidity in digital assets as well as access to multiple custodians via a bespoke post-trade solution. These are key requirements for our institutional clients who want to be able to trade, invest and safely access this growing area of the market.”

Not a certainty

Despite the positive tone of Fidelity and its partners, there are mixed signals from institutional investors on the validity of crypto investments.

A survey by JPMorgan Chase last month found that just 10% of institutional investors trade digital currencies.

Eight in ten respondents surveyed at the Wall Street firm’s Macro, Quantitative and Derivatives conference said they would not trade cryptocurrencies.