Fidelity conducted a survey of 1,100 institutional investors in the USA, Europe, and Asia. Survey respondents included financial advisors, major investors, family offices, cryptocurrency hedge funds, venture capital funds, traditional hedge funds, pension funds, mutual funds, and institutions.
According to the financial services provider, 52% of the investors surveyed have already invested in digital assets worldwide. Asia was in the lead is largely invested where 71% of investors surveyed are already part of their portfolio in digital currencies. In Europe, the proportion is 56% and in the United States only 33%. In 2020, only 27% of US respondents reported having invested in cryptocurrencies.
Fidelity also noted that US investors seem to prefer digital asset investment products to buy crypto outright. This year, 18% of US citizens surveyed indicated that they purchased or invested in digital assets through an investment product, up from the 8% seen last year. 14% of US investors surveyed said they invested directly in digital assets (up from 16% the previous year). The survey also found that 70% of all investors have a neutral to a positive attitude toward digital assets.
Nearly 90 percent of participating investors said they think digital investments are attractive. According to the survey results, the biggest incentive was the possibility of high profits. More than half of the investors surveyed believe that price volatility is one of the biggest obstacles to investing. The lack of basic data to determine a reasonable value is also an obstacle to investing in an asset class that is still young for 44% of survey respondents.
Uncertainty about the regulatory aspects of digital currencies remains an obstacle for nearly 40 percent of investors surveyed, according to Fidelity, referring to the survey results.
Significant progress has been made in addressing some of the regulatory ambiguities associated with digital assets in each region. While there are still some concerns about the regulatory rating among investors, our experience has shown that investors respond positively to constructive regulations imposed in the past year. If the Digital Asset Markets Regulation (MiCA) proposal is adopted, digital asset regulation can be coordinated across Europe, which in turn will facilitate market access for institutions.
Digital asset markets aim to create uniform regulations for dealing with digital currencies such as Bitcoin, Ethereum, and the like. 43% of investors surveyed are concerned about the risks of market manipulation.