Coronavirus Skyrockets the Cryptocurrency Market

Coronavirus Skyrockets the Cryptocurrency Market

Crypto firms like Fidelity’s digital asset subsidiary found a lot more institutional investors buying crypto-derivative offerings this year. The firm confirmed that 80% of their newest investors found the asset class’ appeal just recently.

In the survey conducted earlier this year, institutions are increasing their portfolio allocation with Bitcoin as their top option. More than 20% of these respondents were already exposed to futures, reading as a substantial increase relative to 9% seen in 2019.

Said survey took place between November and March with 774 institutions in the United States and Europe. The US contributed 393 of them, which means 86 more institutions added crypto futures to their portfolio in comparison to last year.

Fidelity said increasing numbers of crypto-native incumbent service and physically settled future contracts explain the institutional surge.

Interest by Region

There was another survey from the trillion-worth asset managing firm held last Tuesday. The company found 36% respondents in 279 institutions were already invested in digital assets around the US and Europe.

 

Hedge funds and venture funds were two of their most famous offerings. Although, they also found a strong following among the participants’ family offices and high-net-worth individuals.

 

According to the president of Fidelity Digital Assets, Tom Jessop, the results show greater interest of digital assets from the broader market.

 

In the same survey, European institutions were found much more likely to hold crypto than those in the US. In fact, 82 percent of European institutional investors found digital assets appealing, as opposed to 74 percent in the US.

 

Fidelity didn’t specify which institutional investors had exposure to cryptocurrency futures. But reports found that these derivatives’ trading volumes soared to $602 billion in May to an all-time monthly high.

 

The survey led investors to look forward to a much more sophisticated market as digital assets earn more exposure to clients, therefore abusers, in the foreseeable future.

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