Fidelity: 71% of Institutional Investors Plan to Buy Crypto

Even in the midst of a major selloff, the majority of institutional investors surveyed by Fidelity expect to hold or invest in digital assets in the future.

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key takeaways

  • Fidelity data shows that 7 in 10 institutional investors hope to gain crypto exposure in the near future
  • Of those interested in digital assets, 90% see themselves investing in the asset class within the next five years

Most institutional investors expect to hold or invest in digital assets in the future, according to research from Fidelity Digital Assets’ 2021 Institutional Investor Digital Assets Study.

Seven in 10 institutional investors see themselves gaining crypto exposure going forward, and more than 90% of those interested in digital assets expect to have portfolio allocation within five years, the report indicated. 

“A strong indicator of the increased maturity of the digital assets market has been the diversity of institutional participants over the past 12 to 15 months,” said Christine Sandler, head of sales and marketing for Fidelity Digital Assets. “Earlier, institutional adoption was driven mainly by crypto native firms and family offices, but we’ve seen an uptick in interest from traditional institutions and financial intermediaries, which is contributing to the year-over-year growth in adoption.”

Just over half — 52% — of institutions surveyed in Asia, Europe and the US currently invest in digital assets. Exposure to crypto is highest in Asia, where 71% of institutions surveyed currently hold or invest. 

Institutional exposure to crypto is growing in Europe and the US. 56% of European institutions and 33% of US institutions now have investments in digital assets, up from 45% and 27%, respectively, the year prior.

Institutional investors that are skeptical of the asset class primarily cite volatility and security as top concerns, the report said. But concerns are less prevalent today than they have been in recent years, according to Tom Jessop, president of Fidelity Digital Assets. 

“The expectation that the vast majority of institutions will have some exposure to digital assets

by 2026 shows that investors have a deeper understanding of the asset class and have progressed in the three-phase journey from education to adoption,” said Jessop.

The report comes amid a major selloff in the crypto market. Bitcoin, the world’s largest digital currency dipped below $30,000 again Tuesday. It’s a far cry from its all time high of more than $60,000 in April, a run-up that was largely attributed to greater institutional adoption of digital assets. Bitcoin investment products have seen two consecutive weeks of outflows amid the selloff, according to data from CoinShares. Ethereum products have experienced greater investor interest in recent months, the data shows.

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