Of Institutions Are Hodling Bitcoin Says Fidelity

Fidelity Digital Assets published the 2021 Institutional Investor Digital Assets Study that tracked institutional investor's behavior in the face of the delicate situation traditional markets endured for the past year. However, the study found that those market conditions were actually a catalyst for many investors to jump into Bitcoin and other cryptocurrencies, increasing the likelihood of investing in such assets for 44% of investors.

The study also found that European investors showed a more progressive view towards bitcoin than Americans across all the study's categories, similar to last year's survey. However, Asian investors were the ones to show the most significant inclination towards investing in bitcoin and cryptocurrency, with 70% of those surveyed saying they were currently holders of these assets. This year was the first time that Asian investors were part of the survey.

“Across Europe and the U.S., we saw year-over-year growth across nearly every category, including perception and appeal, current exposure, and propensity for future investment,” the report said.

Considering all investors surveyed across the globe, 52% of respondents said they invest in bitcoin or cryptocurrency, and 9 in 10 investors find those assets appealing. Notably, 84% of European high-net-worth investors said they are invested in the asset class. The most appealing attribute of bitcoin and cryptocurrency shared by institutions was “high potential upside” for future price appreciation.

Fidelity also researched what institutional investors currently see as the biggest barriers to adoption. The firm found that 54% of the respondents see price volatility as one of the greatest barriers, while 44% shared a “lack of fundamentals to gauge appropriate value” as the primary concern.