Institutional investors have warmed up to cryptocurrencies despite massive price correction
per one newly published Fidelity Investments SurveyOwned by the Second Largest Cryptocurrency, Ethereum, Is Up Five Digits in the US
Overall, Bitcoin and Ethereum remain the top two most popular options among institutional investors.
Cryptocurrency ownership is more widespread in Asia and Europe than in the US (65% and 42%), respectively.
It is worth noting that cryptocurrency acceptance grew substantially in 2022 despite a major market rout.
80% of institutional investors believe that cryptocurrencies should be part of a portfolio.
Tom Jessop, president of Fidelity Digital Assets, has opined that the fundamentals of cryptocurrencies remain strong despite the fact that their prices are down significantly from 2021 highs. Jessop added that cryptocurrencies are now better positioned to withstand long periods of low prices because of increasing institutionalization.
as Reported by U.TodayFidelity recently decided to expand its cryptocurrency push by hiring another 100 employees for its cryptocurrency unit.
Some investors are still on sidelines
Still, a substantial portion of institutional investors refrains from getting exposure to cryptocurrencies.
According to the survey most of them are concerned about volatility and security risks.
There are those who believe that the cryptocurrency market is still heavily manipulated despite maturing over the past few years.
Given that the previous bull run was primarily driven by institutional narrative, the industry will have to tackle these problems to win over more traditional investors.
