Fidelity: 7 in 10 institutional investors plan to add digital assets

PROVIDENCE – More than 7 in 10 institutional investors plan to add digital assets to their portfolios in the future, according to a new study by Fidelity Investments Inc.

The Fidelity Digital Assets 2021 study, published July 20, speaks to the continuing popularity of digital assets such as cryptocurrency in recent years. About one-third of U.S. institutions hold investments in digital assets, compared with 27% the year prior, according to the study.

Digital assets are particularly appealing for investors due to their high potential upside and low correlation to other assets. Since 2019, the potential upside has gained 16 points among U.S. investors.

However, price volatility remains a concern, as do concerns about market manipulation and the inability to gauge or predict value and trends. Investors are less worried than in years previously, however, with 9 in 10 of those interested planning to add or expand investments in digital assets within the next five years.

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As adoption increases, institutional investors also want more from their digital asset custodians. Specifically, they want a custodian that offers electronic trading and market data and analytics, along with safety and security features.

The survey reflects responses from 1,100 institutional investors across the U.S., Europe and Asia, including high net worth investors, family offices, digital and traditional hedge funds, institutional investors, financial advisers, and endowment and foundations.

Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.