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A third of the institutes have invested in cryptocurrencies

June 10, 2020

A fidelity poll of 774 institutional investors found that more than a third of companies worldwide invested in digital assets or derivatives.

While 36% of institutions worldwide hold cryptocurrencies, The multinational financial services company Fidelity found that only 27% of the 441 US institutions surveyed are open to cryptocurrencies.Although this is an increase of 22% over the previous year, almost half of the European institutions have many virtual assets.

Bitcoin (BTC) is the most popular cryptocurrency investment. More than a quarter of respondents with BTC, while 11% of the companies own ether (ETH).

A third of the institutes have invested in cryptocurrenciesA third of the institutes have invested in cryptocurrencies

Fidelity commissioned Greenwich Associates to conduct this survey from November to early March, and the data reflect this Companies’ positions on cryptocurrencies before the violent fall of “Black Thursday”, which cut crypto prices by 50% or more.

Institutions prefer cash over derivatives

More than 60% of the institutions that are open to cryptocurrencies have bought on the spot markets, and the other 40% opt for derivatives.

While many institutions haven’t made a decision about cryptocurrencies yet, 6 out of 10 respondents now believe that “digital assets have a place in their investment portfolio”, Only 20% of participants said they didn’t find anything attractive about crypto assets.

Fidelity’s Tom Jessop said: “These results confirm a trend that we see in the market to increase the interest and acceptance of digital assets as a new class of fixed assets.”

Looking to five years in the future, 91% of respondents said that at least 0.5% of their portfolio consisted of crypto assets.

The institutions’ appetite for cryptocurrencies is growing

In early May, founder of the billionaire hedge fund, Paul Tudor Jones, said that his Tudor BVI fund may have a low single-digit percentage of its portfolio in BTC. “The best strategy to maximize profits is to have the fastest horse. If I had to predict, I would bet on Bitcoin.”

In the past few months, we’ve also seen Grayscale, a Bitcoin mutual fund, aggressively increase its BTC accumulation after absorbing a rate of 33% of recently mined Bitcoins in the first quarter of 2020, about 1.5 times the rate of the new offer since halving.