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Fidelity Survey Reveals 2020 Marketplace Downturn Was a Catalyst designed for Institutional Investors

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Fidelity Digital Assets Administration has released the results from a recently conducted survey by which it profiled as many as 1, 100 respondents spanning economic advisors, hedge and opportunity fund managers, and other higher networth individuals across the US, Europe, and Asia. The particular survey sought to understand the perspective or inclination of this group of investors when it comes to the digital currency ecosystem, particularly amidst periods of unclear global economic meltdown recorded in 2020.

Per the findings, the advent of the COVID-19 pandemic created such market conditions that come off as a “catalyst for many traders. ” The pandemic stopped global business activities, and lots of firms were crippled. The majority of governments stepped up to ease the economic pangs via relief funds that were permitted through the printing of fiat currencies. This in turn spurred the devaluation of national monies, and as such, created a need for cash managers and investors to explore a long lasting alternative to guard their capital.

According to the Faithfulness survey, about 44% from the respondents said that events this past year increased their likelihood of investing in digital assets, as against the 40% that said the activities had no impact.

Various other Highlights of the Survey

Regarding 52% of those surveyed stated they are invested in digital resources. European investors recorded an even more positive exposure to the electronic currency ecosystem when compared to the United States-based investors. The particular survey result shows that in Europe, 84% of high-net-worth individuals surveyed are invested in digital assets, while in the U. S, there was a 20-percentage point increase in financial experts surveyed invested in digital property.

While the surveyed American plus European investors recorded a steady growth from 2019, up to now, Asian investors surveyed for the first time recorded a higher number of institutional investors when compared to the two.

Adoption of Digital Assets by Region. Source: Fidelity

“We were not surprised to understand that Asia has the the majority of institutional investors with allocations to digital assets of those surveyed. Historically, Asian investors have had a more positive view of digital assets and were early adopters associated with more traditional digital payments. For instance , in China, a forecasted 32. 7% of point-of-sale payments are made via cellular, double the UK (15. 3%) and US (15. 0%), according to OMFIF, ” the report detailed.

The uptick recorded in the US was related to the number of investment vehicles at this point gaining ground in the region.

“This uptick in adopting via investment products is likely supported by an increase in the number of public trust-structured purchase products now available in the US, in addition to an array of private fund offerings issued by managers through the entire past year. ”

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