Bloomberg reports that as per a recent study by Fidelity Investments, around 50 percent of institutional financial firms think that virtual assets deserve to be invested in.
Survey among institutional companies
Earlier in 2019, Fidelity launched a custody service for BTC. Now, the company is studying the sentiment that hedge funds, pension funds, etc, have regarding crypto so it can adjust its new digital assets business if necessary.
Nearly 500 institutional investors were surveyed from late autumn 2018 to late winter 2019. Over 70 percent of investors would rather purchase investment tools based on virtual assets. Nearly 60 percent prefer to invest in crypto directly.
Investors still being cautious
Tom Jessop, the chief of Fidelity Digital Assets, mentioned to Bloomberg that those who took part in the study named high volatility and lack of regulations as major drawbacks regarding crypto assets. However, the study was conducted before the market saw a glimpse of the coming bull run this year.
‘Crypto troubles’ continue
Despite the rise in trust of institutional investors, their fears regarding uncertainty and lack of stability in the crypto market remain. This is confirmed by the recent issues of Tether and Bitfinex, the companies that together have been hiding a massive financial loss of $850 mln of customers’ money with USDT coins.
The accusation came from the NY attorney general. Another recent case when investors lost most of their crypto assets was the Canada-based QuadrigaCX exchange. The sudden death of its CEO on a trip to India got all the assets locked in his personal laptop to which nobody knew the password.
Yuri Molchan
Denys Serhiichuk
Vladislav Sopov