Fidelity Digital Assets, the cryptocurrency arm of the asset management giant, released a survey that notes 52% of investors secured their exposure to cryptocurrencies this year. According to the study, it was performed between December 2020 and April 2021 with 1,100 blind interviews and phone sessions. Additionally, 84% of the high-net-worth individuals in Europe invested in digital assets.
On the other hand, in the United States, the survey highlighted a 20% point increase in the number of financial advisors who allocated investments to cryptos. The broad picture unveiled that 70% of the surveyed investors had a neutral-to-positive stance on virtual currencies. In Asia, ‘virtually’ all financial advisors who participated in the study had the same perception towards cryptos, Fidelity Digital Assets stated.
“Nearly 9 in 10 investors surveyed said they found digital assets appealing. The most appealing attribute of digital assets for institutions surveyed was the high potential upside,” the firm noted. Regarding crypto volatility, 54% of the investors considered that price volatility is among the critical barriers when investing in digital assets. “44% of investors surveyed shared that the lack of fundamentals to gauge appropriate value was a barrier to investment,” the survey added.
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Opinions on CBDCs
Still, nearly 8 in 10 investors that participated in Fidelity’s study had a feeling that cryptocurrencies have a place in an investment portfolio. Furthermore, 69% of all respondents had a neutral-to-positive view towards a US dollar-backed by the central bank digital currency (CBDC).
On the survey, Michael Durbin, Head of Fidelity Institutional, commented: “The study validates what we’re hearing from Fidelity’s institutional and advisor clients, that demand for digital assets is growing rapidly across segments. Family offices have been early adopters and view digital assets as a strategic allocation. There is now also a sense of urgency among financial advisors who are recognizing that digital assets have come of age, driven by increasing end-investor interest in these assets, particularly bitcoin.”
Recently, Fidelity Digital Assets stated that it has been seeking to increase its workforce amid the strong demand experienced across its crypto services from institutional customers.