According to a survey published in April of this year, up to 70% of global institutional investors planned to invest in cryptocurrencies before the subsequent downturn in the crypto market.
70% of institutional investors are considered to be invested in cryptocurrencies
A survey report by the Greenwich Alliance on behalf of Fidelity Digital Assets in April this year found that up to 70% of institutional investors participated in a crypto purchase program prior to the market downturn.
In addition, according to Reuters, more than 50% of the 1,100 investors surveyed said a crypto-focused arm of US mutual fund giant Fidelity Investments had invested in digital assets from December to April.
However, since April, after many cryptocurrencies hit all-time highs (ATH), Bitcoin (BTC) is down 54%, while Ethereum (ETH) is down 60% against its own ATH in May and has seen significant outflows in recent months.
Prior to this sharp correction, according to the survey, about 90% of those interested in investing in cryptocurrencies said they expect their company or client’s portfolio to include direct or indirect exposure to crypto assets within the next five years. Additionally, respondents said price volatility is the biggest barrier to new investors, followed by a lack of fundamentals necessary to assess value and concerns about manipulation.
Jim Neumann, chief investment officer at Sussex Partners, told Institution Investor, commenting on the survey, “There are also many competition concerns around acceptance, particularly competition from sovereign states. If the US or China or whoever switches to digital yen or digital USD, that will change the game. “
Respondents in Asia strongly believe that digital assets are an important part of an institutional portfolio. In Europe, 77% of investors say that crypto deserves a place in their portfolio, while in the US, 69% of investors consider digital assets very important.
Meanwhile, Neumann added that his “more advanced, younger, more tech-savvy” clients are more focused on this asset class, while more experienced investors struggle to get into this space.
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