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Why Institutional Investors are Eager to Invest in the Crypto Sector

Surveys are regularly conducted on how investors feel about cryptocurrencies. It can be seen that the adoption is improving significantly almost with every survey, even though it still has a long way to go. Despite the declining markets, adoption is growing and more and more investors can imagine buying cryptocurrencies or investing in digital assets.

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The latest crypto news looks at a survey conducted by Fidelity Digital Assets. The survey found that the adoption of cryptocurrencies is steadily increasing and by 2026, the majority of institutional investors are willing to buy digital assets. That does not exclude cryptocurrencies from digital assets.

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Institutional interest in cryptocurrencies is growing

Fidelity Digital Assets, the subsidiary of global asset management giant Fidelity Investments Inc, commissioned Coalition Greenwich to conduct a survey. This was to ask 1,100 institutions what their expectations are for digital assets and whether they would like to invest in them in the future.

The majority of respondents said they plan to invest in digital assets in the future. They did not exclude cryptocurrencies. This crypto news shows that the adoption rate of cryptocurrencies continues to grow and institutions are also looking to invest in cryptocurrencies.

As Reuters reported, the surveys were conducted between December 2020 and April 2021. Participants included wealthy investors, family-owned businesses, and digital and traditional hedge funds. Foundations and financial advisors also participated in the survey.

The survey first asked about the extent to which institutional investors want to invest in digital assets. But it also asked directly about investing in cryptocurrencies or buying crypto-related company stocks. In this context, around 70% of respondents were convinced that they will invest in digital assets in the next five years. In addition, nine out of ten respondents said they would like to add digital assets to their portfolio themselves. By 2026, around 90% of respondents plan to invest in digital assets.

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Good crypto news in numerous surveys

Surveys are regularly conducted on how investors feel about cryptocurrencies. It can be seen that the adoption is improving significantly almost with every survey, even though it still has a long way to go. Despite the declining markets, adoption is growing and more and more investors can imagine buying cryptocurrencies or investing in digital assets.

While Asians and Americans, in particular, are convinced by digital assets, it is still a bit quieter in our latitudes. However, investors are becoming more bullish here as well, which partly comes from the economic crises or the pandemic. On the one hand, interested parties were able to inform themselves during this time, as they had significantly more time, and on the other hand, digital assets are on everyone’s lips in the meantime.

Tom Jessop, president of Fidelity Assets, commented: “The pandemic – and the fiscal and monetary actions in response – have been a catalyst for many institutional investors to define and operationalize their investment thesis.”

While there is still some skepticism about cryptocurrencies, this crypto news is a clear sign that people are at least thinking about investing and even already have plans. It is still difficult, especially for small investors, as price volatility is a deterrent and so many small investors are still hesitant. In addition, many also express concern that the risk of market manipulation is very high. For this reason, they are not sure whether to invest or not.

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(Featured image by Alesia Kozik via Pexels)

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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Helene Lindbergh is a published author with books about entrepreneurship and investing for dummies. An advocate for financial literacy, she is also a sought-after keynote speaker for female empowerment. Her special focus is on small, independent businesses who eventually achieve financial independence. Helene is currently working on two projects—a bio compilation of women braving the world of banking, finance, crypto, tech, and AI, as well as a paper on gendered contributions in the rapidly growing healthcare market, specifically medicinal cannabis.