Fidelity reports spike in institutional adoption of Bitcoin

Fidelity Digital Assets has reported a significant increase in institutional investment for Bitcoin and Ethereum across Europe and the United States.

The private investment company published the results of a survey that examined the scope of interest in cryptocurrencies in the developed world.

It states that one third of respondents in the US and Europe hold Bitcoin, other digital assets and/or derivative products tied to cryptocurrencies.

Fidelity write: “Digital assets are gaining in favorability and appeal amongst institutional investors, with almost 80% of investors surveyed finding something appealing about the asset class. In a 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.”

President of Fidelity Digital Assets, Tom Jessop, claimed that the reason for the heightened interest in Europe was partly due to negative interest rates in a number of nations.

He said: “Europe is perhaps more supportive and accommodating. [There are] things going on in Europe right now, you got negative interest rates in many countries. Bitcoin may look more attractive because there are other assets that aren’t paying return. These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class.”

This survey comes weeks after renowned investor Paul Turdor Jones revealed that he had put capital behind Bitcoin.

Last August Coin Rivet reported on the apparent lack of retail interest in cryptocurrencies before concluding that a surge in institutional investment was key to the hike in price in 2019.

It seems as though this trend has continued throughout 2020 especially in light of economic instability and quantitive easing measure by the Federal Reserve.

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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