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The following is a brief summary of the
The Institutional Investors Digital Asset Survey
published by Fidelity Investments in June 2020. The report
provides a detailed overview on the results from a survey
conducted by Fidelity Consulting and Greenwich Associates. With
data acquired from a pool of around 800 investors in the European
and US markets, these findings gauge institutional interest and
the adoption of digital assets, as well as understanding the key
barriers to participation in the asset class.
Introduction
Upon completion of the survey, Greenwich and Fidelity concluded that
European investors have a more progressive view of digital assets;
although it is worth noting that the abundance of concerns from
previous years about digital assets among U.S. investors also
declined.
Methodology
-
A common assessment factor used throughout the 774 global
investors was to better understand how institutions, advisors,
and investors think about digital assets.
-
Additionally, the survey spanned a variety of investor
segments, including high-net worth individuals, financial
advisors, family offices, crypto hedge funds and venture
funds, traditional hedge funds, endowments and foundations.
Highlights
Current Exposure and Channels for Exposure
36% of institutional investors
surveyed
currently invest in digital assets.
Perception of Digital Assets
Almost 60% of all investors
suveyed have a
neutral or positive perception
towards digital assets.
Appeal of Digital Assets
Almost 80% of investors find
something appealing about digital assets. The most appealing
characteristics are the lack of correlation with other asset
classes, exposure to an innovative technology play and high
potential upside.
Obstacles to Investment
The most common obstacles to digital asset adoption are
price volatility, concerns around
market manipulation and
lack of fundamentals to gauge
appropriate value.
Categorization of Digital Assets
More than 6 out of 10 investors feel digital assets have a
place in their portfolios.
Almost 40% of investors believe in digital assets belong in the
alternative assets class. 20% of investors believe digital
assets belong in an independant assets class.
Digital Asset Investment Products
More than 80% of investors
indicated they would be
interested in institutional investment products
that hold digital assets.
Ownership of Digital Assets
-
Multiple factors may be driving ownership of digital assets
including derivatives offered by 3rd party brokers.
-
59% of U.S. investors currently have exposure to digital
assets. A plausible explanation for this increase is the
result of more education, and an increased awareness of the
asset class.
-
Moreover, 22% of U.S. respondents invested in the asset
class have exposure through a futures contract; a drastic
turnaround based on the 9% from the previous year. Many
hypothesize this increase is a result of the increase in the
number of crypto native and incumbent service providers
offering cash, and physically settled futures contracts.
-
Bitcoin continues to be the digital asset of choice with
traditional investors and crypto funds.
-
Although only 11% of surveyed investors have exposure to
Ethereum, such findings correspond to the fact that Bitcoin
is the largest digital asset in terms of market
capitalization. Additionally, BTC does have the longest
track record, a developed institutional infrastructure
through exchanges, and of course has the most publicity from
mainstream media outlets.
Key Takeaways
In regards to the global perception of digital assets from the
examined markets, almost 60% of all investors surveyed have a
neutral or positive perception of the asset class.
From the following image, approximately 58% of U.S. investors
expressed a neutral or positive perception of the crypto market;
a beneficial 15% increase in confidence from the previous year.
While in contrast, 59% of European investors surveyed have a
positive or neutral perception of digital assets.
Appeal Of Digital Assets
-
Since investors are always looking to improve risk-adjusted
returns, there is a certain extent of appeal of digital
assets; outlined by the breakdown above, the asset class has a
combination of innovative technology, high potential, and
independence from government intervention. All which
contribute to the drastic increase in the institutional
adoption of the crypto market.
-
The survey results are an encouraging reinforcement of the
trends observed from conversations clients and prospects have
with Fidelity investments. While looking ahead, there is an
increasing momentum in digital asset investment and interest
across multiple investor segments.
About Consilium
Consilium Crypto is a big data company that provides quantitative
and qualitative insights to market participants in the digital asset
space, including funds, family offices and exchanges.
Consilium analyzes 17,000 trading pairs, over 1000 assets, across
50+ exchanges, and tracks trading activity to the millisecond. Our
system monitors raw transaction data, as well as complete price and
liquidity information from order books around the globe. These data
pipelines power our core products, designed to help funds find alpha
and place large orders efficiently in times of thin liquidity.
For more information, send an email to
info@consiliumcrypto.ai
Author: Anikait Panikker
