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70% of institutional investors plan to invest in crypto in the future despite price volatility

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Mark Jason Alcala reporter

Tue, 20 Jul 2021, 15:18 pm UTC

Around 90 percent of the institutional investors that expressed interest in investing in crypto in the future said that they expect their clients’ or companies’ portfolios to include crypto-related investments within the next five years.

Image by Pete Linforth from Pixabay

A majority of institutional investors are still interested to enter the crypto market. A recent survey revealed that 70 percent of institutions plan to invest in or buy crypto assets in the future despite the volatility of prices.

In a global survey by Coalition Greenwich, seven in 10 institutional investors say they expect to invest in crypto in the future, according to Reuters. The survey was done on behalf of Fidelity Digital Assets, the crypto-focused unit of one of the world’s largest financial services providers Fidelity Investments, which has more than $ 7 trillion in client assets under administration.

Coalition Greenwich’s survey also found out that more than half of respondents revealed that they already have investments in digital assets. The study involved 1,100 institutional investors globally and ran from December 2020 until April 2021. Respondents of the survey included digital and traditional hedge funds, endowments, financial advisors, high net worth investors, and family offices.

Meanwhile, around 90 percent of the institutional investors that expressed interest in investing in crypto in the future said that they expect their clients’ or companies’ portfolios to include crypto-related investments within the next five years. These could include direct investments into cryptos such as Bitcoin (BTC) and Ether (ETH), or exposure to crypto via investments of crypto companies or other crypto-related investment products.

Cryptocurrencies are known for their price volatility. In fact, the price of Bitcoin, the world’s largest crypto by market cap, has fallen by around 50 percent from its all-time high in April.

Indeed, the institutions surveyed said that price volatility is the biggest obstacle for new investors. Respondents also cited the possibility of market manipulation and the lack of fundamentals to determine the value of crypto as major issues.

Fidelity Digital Assets was launched by Boston-based Fidelity Investments back in 2018, becoming one of the first mainstream financial services providers to embrace crypto. It offers custody and execution services for digital assets such as Bitcoin for institutional clients.

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