Institutional investors are buying more cryptocurrencies as they are more familiar with those assets, but the US reconfirms its backwardness. The survey indicates a trend is emerging, as most respondents consider crypto assets have lost their status as an alternative investment.
The current bearish trend has allowed the crypto market to evolve, making it easy to identify strong players and trends. This dynamic seems to include institutional investors forever, as they no longer consider digital assets as an alternative investment.
Many reports and studies on the cryptocurrency industry appear at the end of the year. Sometimes valuable assessments help define a trend or take stock of the changeable digital economy.
Fidelity Digital Asset has recently published its annual report on how institutional investors see the digital asset market. Despite the current bearish market, they maintain an optimistic sentiment and no longer consider cryptocurrencies an alternative investment.
Institutional Investors Express Increased Trust in Crypto Assets
Although the document is just over 20 pages, there have been only a few significant year-over-year changes. This study started with 1,052 blind interviews with professionals from various firms. That led to the publishing of a report on the relationship between institutional investors (and high-net-worth individuals) and the crypto market.
The trend is quite bullish despite the current bearish market, as the trust expressed by institutional investors has increased significantly since 2021. Around 58% of the respondents now invest in cryptocurrencies and have a different perception of them (51%) worldwide.
The trend in Europe (51%) is at the same level of global adoption and positive perception as in Asia. Institutional investors may have familiarized themselves more with crypto assets as they have invested more in them. The United States reconfirms its backwardness in this area, with only 39% of favorable positioning.
Cryptocurrencies Are No Longer an Alternative Investment for Institutional Investors
However, the above survey indicates a trend is emerging as the turning point is elsewhere. Institutional investors have a new perception of the crypto market, as they consider they have lost their status as an alternative asset class.
In contrast to 2021, more institutional investors view digital assets as an independent asset class. For the first time in the history of this study, their number exceeds those who think they are only part of the alternative asset class.
Since the main obstacle is the significant volatility of the cryptocurrency sector, it will take time for mass adoption. That makes crypto assets attractive investments unless the market stabilizes after a long process of institutional drowning.
Institutional investors have expressed optimism about cryptocurrencies despite the current bearish crypto market. For example, Michael Saylor has bought significant amounts of Bitcoin to increase the reserves in his company.
Meanwhile, Bitcoin is trading at around USD 20,018 and has accumulated a 6% gain over the last week. While its daily trading volume is above USD 41.15 billion, its market capitalization is about USD 387.57 billion, according to CoinGecko.
By Alexander Salazar
