In a press release on July 20, Fidelity Digital Assets painted a severely hopeful picture of the crypto-investments environment and the future value of this new assets class. It referred to its survey conducted as part of its “2021 Institutional Investor Digital Assets Study”. According to Fidelity’s survey, seven out of ten institutional investors are expected to buy crypto-assets in the future and nine out of ten investors find the asset class appealing.
It also forecasts that >90% of institutions interested in crypto-assets plan to have allocation in their or their client’s portfolio by 2026. The Fidelity Digital Asset study cites “high potential upside and low crypto correlation to other asset classes” as the main appealing factors for institutional investors. It also confirms the perception that the legitimacy and realization of the potential of crypto-asset continue to rise for the institutional investors and many of them are ready to take action.
Cryptocurrency market total capitalization continues to rise. It currently stands at $1.3 trillion+, up from the last ‘17-‘18 bull run high of $800 billion+. However, it’s significantly down from this bull run’s high of $2.5 trillion+ achieved in the month of May 2021. Fidelity Digital Assets survey indicates that Asian institutional investors have a more favorable opinion of crypto assets. On the other hand, their American and European counterparts are quickly catching up.
Fidelity digital asset’s press release also lists the most troubling parts of crypto-assets investments. Their price volatility is arguably not a bug by default and expectation of mature infrastructure around crypto-assets. Institutional investors also seek better custodial solutions, security, analytics, and trading services before they begin their journey.