The first half of 2018 saw the worst crypto winter in history. The market fell into crisis after Terra collapsed and other crypto-related businesses.
Fidelity digital assets reports that crypto fundamentals have remained unaffected by the bearish trend. This information sprung following the manager’s annual report tagged 22 Institutional Investor Digital Assets Study. As the company x-rayed crypto from an institutional perspective, this information was generated.
According to the research, the crypto market has fully repositioned to wade off the impact of macroeconomics it’s been facing recently.
Study reveals strength in crypto fundamentals
Fidelity President Digital Assets Tom Jessop reacted to this research. He stated that digital fundamentals had remained strong despite the recent storms. He noted also that crypto markets have been institutionalized for many years, which has helped them withstand the recent impact.
Jessop stated that institutional investors showed their ability to scale through market cycles. Jessop mentioned that attractive market factors were still relevant as they moved through the bearish period.
The research surveyed about 1,052 experts from different firms during the year’s first half. The research revealed the different levels of crypto adoption by investors of various types.
According to survey, adoption among institutional investors increased in some regions compared to the year’s value. Europe and the US saw an increase of 42%, 67% and respectively. However, institutional investors in Asia have seen a slight decline. Overall, however, they were the most enthusiastic about crypto assets and had an average of 69%.
Crypto adoption and consideration is a top investment type among high-net worth investors, venture capitalists, financial advisors and crypto hedge fund investors. Traditional hedge funds and pension plans are the lowest-scaling adoption investors.
Fidelity Digital has announced that it will offer Ethereum trading options to its institutional market this month.
Institutional Investors: Top-Selling Features
Fidelity digital also found some attractive features in its research, which was noted by institutional investors. The surveyed participants’ most appealing ones include innovation technology, decentralization, and high potential upsides.
Survey respondents cited crypto as having no correlation to any other assets as their fifth favorite feature. The crypto markets are highly correlated to tech stocks, however.
Additionally, the research covered investors’ plans for cryptocurrency investments or purchases. The research found that 74% still planned to invest in cryptocurrency, which is slightly more than the 71% reported last year.
It is admirable that this value was achieved considering that 2021 saw bullishness, while 2022 saw bearishness.
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