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Institutional Investing Trends in Cryptocurrency - Which Coin Ranks #1??

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Avatar for The.Part.Time.Economist
1 week ago

For the past few years, the investment giant Fidelity has conducted interviews with high net worth individuals, hedge funds, financial advisors, and VCs to get a feel for what the big institutional investors think of crypto. Although this research is intended to provide a snapshot of what the "big money" thinks of crypto, it also provides valuable insights for us retail investors as well. In this post, I'll discuss some of the key findings of the Fidelity Institutional Investors Digital Asset Survey, share my thoughts, and hopefully illuminate some important takeaways that will provide valuable information.

As stated, the Fidelity crypto survey is intended to describe how institutional investors feel about crypto, but I think that it also has applications for retail investors as well. I'll discuss the full survey in the video, but I think there are a few key points worth noting. Before we start, it's important to note that this survey interviewed 1,100 different investors across the US, Asia, and Europe. 

Key Points

Across the whole group of investors, 52% reported being invested in digital assets.

A staggering 84% of high net worth Europeans are invested in digital assets.

9 out of 10 investors found digital assets appealing.

Bitcoin and Ethereum are the most popular institutional investments although LTC, XRP, BCH, and BNB do have support as well. 

The number of investors that have a favorable impression of digital assets is steadily improving. From 2019 to 2021, positive perception in the US increased from 18% to 29% and positive support in Europe increased from 25% to 49% in a single year. First-year data from Asia reveals a 65% positive view. 

Discussion

While there is certainly additional useful information in the surveys, I think the big takeaway is that crypto adoption is well on its way. Based on my research, it appears that the average digital asset investment rate among the total US population is around 13% Although institutions reported much higher investment rates, I think that feel that institutional trends will slowly work their way down to mainstream financial consciousness and that when average investors see the big institutions investing in crypto, they will feel safer and more comfortable investing in it as well.

Summary 

Overall, I think this survey shows that cryptos are increasing in popularity specifically as a way of mitigating risk and increasing return in portfolios. If you have the time, I think it's definitely worth reading the most recent Fidelity report linked here

As always, thanks for reading and nothing is financial advice. 

References

https://www.cnbc.com/2021/07/23/13percent-of-americans-traded-crypto-in-the-past-year-survey-finds.html

https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/2021-digital-asset-study.pdf

https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/institutional-investors-digital-asset-survey.pdf

 

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