Friday, September 17

US institutional investors want crypto exposure

  • One-third of US institutional investors held some form of digital assets as of April 2021, according to a Fidelity Digital Assets survey.
  • This tracks with Insider Intelligence’s predictions that four in 10 US institutional investors will have some portfolio exposure to digital assets by the end of the year.
  • Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Fintech industry. Learn more about becoming a client.

Thirty-three percent of US institutional investors held digital assets as of April, up from 27% in March 2020, per a Fidelity Digital Assets survey of 408 US respondents.

US Institutional Exposure to Digital Assets

Insider Intelligence

Digital assets cover cryptocurrencies, crypto assets, virtual currencies, and crypto tokens.

This tracks with a prediction Insider Intelligence made coming into 2021: that four in 10 US institutional investors would have some portfolio exposure to digital assets by the end of the year.

With many months to go before the end of the year, we may very well reach this threshold, especially since 69% of respondents said they plan to add digital assets in the near future.

What is driving this adoption? Survey respondents pointed to digital assets’ high potential upside and lack of correlation with other asset classes as key reasons to invest.

Meeting this demand presents significant growth opportunities, as seen with crypto asset managers Grayscale’s and Coinbase’s surging institutional AUM.

Financial institutions also want a piece of the action and have added crypto services in recent months, including Goldman Sachs, Morgan Stanley, and even JPMorgan — despite its CEO repeatedly criticizing the asset class. This has improved access to crypto exposure, which should push adoption forward.

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