Fidelity Digital Assets Management released the results of a recent survey of 1,100 respondents including financial advisors, hedge fund and venture fund managers and other high net worth individuals in the United States, Europe and Asia.
The market downturn in 2020 was a catalyst for institutional investors
The survey sought to understand the prospects and inclinations of this group of investors regarding the digital currency ecosystem, especially in times of uncertain global economic collapse in 2020.
According to the findings, the advent of the COVID-19 pandemic created market conditions that proved to be a “catalyst for many investors.” The pandemic stopped global business activities and many companies remained paralyzed. Most governments have alleviated economic hardship through bailout funds made possible by fiat currency printing. This, in turn, accelerated the devaluation of national money and, as such, created the need for fund managers and investors to explore a resilient alternative to protecting their capital.
According to the Fidelity survey, around 44% of respondents said that last year’s events increased their chances of investing in digital assets, compared to 40% who said that the events had no impact.
Other main points of the survey
About 52% of respondents said they had invested in digital assets. European investors have seen higher exposure to digital currencies compared to US-based investors. The results of the survey show that in Europe, 84% of high net worth individuals surveyed invested in digital assets, compared to only 20% in the US.
While the number of US and European institutional investors has grown steadily since 2019, for the first time in the survey, Asian investors saw a higher number of institutional investors than the two.
“We were not surprised to find that Asia has the most institutional investors with allocations in digital assets. Historically, Asian investors had a more positive view of digital assets and were the first users of digital payments. For example, in China, according to OMFIF, 32.7% of point-of-sale payments are expected to be made via mobile devices, double the United Kingdom (15.3%) and the United States (15.0%),” the report said.
The increase recorded in the USA is attributed to the number of investment instruments that are currently gaining ground in the region.
“This increase in investment adoption is likely to be supported by an increase in the number of trust-based public investment products now available in the United States, and a number of private fund offerings have been added over the past year.”