Despite the disappointing forecasts for the crypto market, institutional investors continue to have faith in the prospects for digital assets. For example, four out of five investors strongly believe that digital assets should be part of their financial portfolios in the future.
Fidelity Digital Assets, an annual survey of institutional investments in digital assets, found that investors showed a high level of interest in buying digital assets between January 1 and June 24 2022.
The study included 1,052 institutional investors: 283 from Asia, 359 from Europe, and 410 from the United States. Fidelity Digital Assets analysts revealed that digital asset adoption rates among various investors in most countries increased from the 2021 numbers:
- from 29% to 39% in the U.S;
- from 45% to 51% in Europe.
Only Asia saw a slight decline in institutional investor interest in the crypto market — from 63% to 60%. However, the level of interest in digital assets among Asian investors is still the highest in the world.
It’s worth noting that 81% of investors surveyed plan to invest in digital assets in the future, regardless of the disappointing outlook for the market. Moreover, investors from Europe (86%) and Asia (84%) are more confident in the prospects of crypto investments, while American investors are less optimistic (74%).
The analysts also pointed out that different types of investors show different adoption levels. For instance, those most actively investing in digital assets are:
- crypto hedge funds and venture capitalists — 87%;
- high-net-worth investors (HNWIs) — 82%;
- financial advisors — 73%.
Meanwhile, adoption rates for other types of investors are much lower:
- family offices — 37%;
- traditional hedge funds — 7%;
- endowments and foundations (E&Fs) — 6%;
- pension funds — 5%.
According to the analysts, the growing interest of some investors in digital assets can, to some extent, be explained by the increased correlation between crypto and stock markets. To recall, experts have lately often focused on the increasing correlation between the value of BTC and shares of tech companies.
At the same time, there are some anomalies in the cryptocurrency market, including a slight decrease in the correlation between cryptocurrencies and stock indexes. Some experts say that BTC may even outperform other assets in terms of investment attractiveness this year.
