New research from Fidelity Investments shows digital assets are viewed positively by institutional investors. In fact, seven in 10 respondents find some aspect of digital assets attractive. Forty-seven per cent see digital assets as innovative technology; 46 per cent find their "low correlation to other assets among the most appealing characteristic”; four in five perceive its characteristics favourably.
While approximately 22 per cent of institutional investors have already invested in digital assets; four in ten claim they are interested in making such an investment in the next five years.
Nearly half of institutional investors (47%) see a place for digital asset-related investments in their portfolios. Not all of them, however, are keen on holding digital assets in the future. According to the research, one in four institutions believe security and safety are the most crucial part of digital asset custody.
Fidelity notes the more positive perception of digital assets by institutions corresponds with venture investments, “good development work and increasing regulatory conversations.”
“Institutions are more aware of these developments now than they were six or twelve months ago,” Fidelity's Medium post reads. “The people we talk with are actively scanning and observing what’s going on, and considering how this technology would impact their business, and — ultimately — financial markets.”