In a recent comprehensive survey of almost 800 institutional investors across the U.S. and Europe, 36% of respondents say they are currently invested in digital assets, and 6 out of 10 believe digital assets have a place in their investment portfolio. The research, which was conducted from November 2019 to early March 2020, sought to understand institutional interest and adoption of digital assets, as well as the key barriers to participation in the asset class. Nearly 800 U.S. and European investors were surveyed, including financial advisors, family offices, pensions, crypto and traditional hedge funds, high net worth investors, and endowments and foundations. This marks the second consecutive year that Fidelity has conducted this survey amongst U.S. institutional investors and the first for European investors.
- Thirty-six percent of respondents (27% in the U.S. and 45% in Europe) say they are currently invested in digital assets. The survey revealed higher penetration with crypto hedge and venture funds, as expected, but also the financial advisor, high net worth individual and family office segments.
- U.S. investors allocated to digital assets increased to 27% from 22% in 2019. Of all U.S. and European investors who have exposure to digital assets, over 60% buy digital assets directly. Fifty-nine percent of U.S. investors who currently invest, are invested directly, up from 55% in the 2019 survey. And amongst the backdrop of recent market growth in the number of crypto native and incumbent service providers offering cash and physically settled futures contracts, 22% of U.S. respondents invested in digital assets have exposure via futures, which is a substantial increase relative to 9% of U.S. investors surveyed in 2019.
- Bitcoin continues to be the digital asset of choice with over a quarter of respondents holding bitcoin; 11% have exposure to Ethereum.
- Looking out five years, 91% of respondents who are open to exposure to digital assets in a portfolio expect to have at least 0.5% of their portfolio allocated to digital assets.
- 6 in 10 of the institutional investors surveyed feel digital assets have a place in their portfolio. Those investors may see certain advantages in digital assets over traditional alternatives such as hedge funds, private equity, real estate, etc. in that they are relatively more liquid, have low transportation, transaction and storage costs and have unique return drivers.
To see the full results of the survey please CLICK HERE