Fidelity: US Pension Funds Explore Crypto And Bitcoin, Eyeing $10 Trillion AUM

Institutional investors, including U.S. pension plans, are increasingly investing, according to a recent study by Fidelity Digital Assets. tend to invest Cryptoassets including Bitcoin.

The survey covered a variety of topics Institutional investor Segments include financial advisors, family offices, hedge funds, endowments, foundations, and pension funds.

Institutional investors dominate virtual currency adoption

investigation findings This shows that institutional investor interest in crypto assets has increased significantly. Of all respondents, 74% indicated their intention to purchase or invest in digital assets in the future, up slightly from 71% the previous year.

In particular, high-net-worth investors in the U.S. have significantly increased their preference for crypto assets, with interest in the future surging from 31% to 74% year-over-year.

Despite the positive sentiment, the survey also revealed concerns and barriers facing institutional investors. price volatility emerged as the most significant barrier, with 50% of respondents citing it as their top concern.

Other major concerns include lack of fundamentals to properly measure value (37%), security issues (35%), market manipulation (35%), and certain coins being considered “unregistered securities.” of regulatory classifications (33%).

The survey highlighted a notable shift in institutional investors’ perceptions. Investors in the US and Europe report increased familiarity, increased awareness, and an increase in the number of investments in crypto assets.Europe has caught up with Asia overall. Approved The US is still behind, but there is a positive perception.

Regarding specific investor groups, high-net-worth investors, crypto hedge funds/venture capital firms, and financial advisors showed the highest adoption rates and consideration. digital assets.

This high adoption rate can be attributed to the organizational structure and investment decision-making policies of these groups. However, adoption rates were lower for family offices, pension/defined benefit plans, traditional hedge funds, and endowments and foundations.

Bitcoin ETFs are attracting a lot of interest

The study also investigated the characteristics of digital assets that institutional investors find most attractive.High upside potential, innovative technology investment opportunities, and decentralization were cited as the most attractive aspects.

Additionally, decentralized finance (DeFi) participation and yield opportunities gained traction compared to the previous year, while concerns about lack of correlation diminished.

This research suggests that institutional investors in Europe and Asia are more accepting of digital assets in their portfolios than their US counterparts.

After all, Bitcoin Exchange Traded Fund (ETF) (ETFs) and multi-digital asset funds emerged as the most attractive products among surveyed investors, both actively and passively managed. European respondents also expressed interest in interest accrual services for digital assets. Fidelity Digital Assets also says:

The increase in adoption reflected in the data speaks to a strong first half for the digital asset industry. Although the market has faced a number of headwinds in recent months, the fundamentals of digital assets remain strong and the market’s institutionalization over the past few years positions the market to weather recent events. Our company believes that. Institutional investors are experienced in managing through cycles, and the primarily idiosyncratic factors they cited as attractive in this study are likely to remain as the market exits this period.

The daily chart shows that BTC price has recovered the $61,000 zone. sauce: BTCUSD on TradingView.com

Bitcoin, currently the market’s largest cryptocurrency, has regained the $60,500 threshold after plunging nearly 20% from an all-time high of $73,700 on March 14 to $56,000 on Wednesday. Ta.

Featured image from Shutterstock, chart from TradingView.com

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