The cryptocurrency market has grown stronger over the years, and industry supporters have asserted that institutional investors will give it a much-needed break. Although many mainstream organizations have attacked the digital asset world because of its instability, it turns out that a big chunk was actually in the field.
A recent Fidelity analysis showed that one-third of all large-scale institutions were involved in cryptocurrencies or crypto-related products. The survey also noted that Bitcoin was the preferred cryptocurrency among organizations.
Fidelity has been a key player in the financial sector for the longest time and made major news when they announced their interest in cryptocurrency research and development. According to research, the United States had a maximum number of institutions invested in crypto. Thirty-six percent of the 774 strong sample size across the US and Europe revealed that they owned cryptocurrencies or some form of cryptocurrency derivatives.
Focusing on the United States alone, almost 27 percent of all institutions are involved in digital assets. These organizations included pension funds, family offices, digital funds, traditional hedge funds, and investment advisers. The same survey conducted a year ago showed that only 22 percent of institutions dealt with any form of virtual assets. In 2019, Fidelity surveyed 441 institutions, a long way from the most recent 774.
Bitcoin has been a key target for many institutional players due to its strong presence in the financial market. Over a quarter of the sample size surveyed hold Bitcoin while a decent 11 percent hold the Vitalik Buterin co-founded Ethereum. In the year to date spectrum, Bitcoin has jumped by a massive 36 percent due to its strong grip on the coronavirus face. At the same time, traditional stocks have plummeted across the board, causing widespread panic.
Tom Jessop, the President of Fidelity Digital Assets recently said in an interview that Europe was more supportive and accomodating than the US when it came to digital assets. He believed that Bitcoin outshone the traditional assets in terms of return or overall value. Jessop added:
“Europe is perhaps more supportive and accommodating, That could be just things going on in Europe right now, you got negative interest rates in many countries. Bitcoin may look more attractive because there are other assets that aren’t paying return. These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class.”
At press time, Bitcoin was trading for $9774 with a total market cap of $179.85 billion. After a relatively bullish run over the past week, Bitcoin’s 24-hour trading volume had risen to $22.794 billion. Bitcoin was not the only cryptocurrency that witnessed a decent price action over the past week as Tether rocketed up the charts to become the third-largest cryptocurrency, overtaking XRP.