The investment giant, Fidelity Survey says that 74% of institutional investors plan to buy crypto in the future.
Even though Bitcoin is trading for 70% less than its all-time high of $69,044 during last year’s hot bull market, big investors are still interested.
A survey by the Boston-based investment giant Fidelity calls that idea into question. The company said today that in the first half of 2022, 58% of institutional investors had money in digital assets. This is a 6% increase from the same time last year.
A news release from the company said that 74% of institutions said they planned to buy digital assets in the future, and 51% have a positive view of digital assets, which is up from 45% in 2021.
Even though the markets have been struggling in recent months, Fidelity Digital Assets President Tom Jessop said, “We believe that the fundamentals of digital assets remain strong and that the institutionalization of the market over the past few years has put it in a position to weather recent events.”
But it’s important to remember that the survey period ended in June. Even though prices went down in the first half of this year, investors still put a lot of money into crypto investment funds.
Since then, the price of Bitcoin and all other cryptocurrencies has gone down even more, so things may have changed. At the end of June, traditional investors took out hundreds of millions of dollars from Bitcoin funds.
In the Fidelity survey, 1,052 institutional investors from the U.S., Europe, and Asia took part. When people talk about “institutional investors,” they mean hedge funds, financial advisors, and people with a lot of money.
The value of Bitcoin and the crypto market as a whole exploded in 2020 and through the end of 2021, and institutional investors were a big reason why. MicroStrategy, a software company, decided to put the largest cryptocurrency on its balance sheet. When other big companies and investment firms did the same, the price went up.
Even though the price of Bitcoin has gone down this year, MicroStrategy has kept buying it. The company has spent hundreds of millions of dollars on Bitcoin, bringing its total holdings to 130,000 BTC, which is worth $3 billion.
