Latest Institutional Crypto Research
Fidelity Investments is one of the world’s largest investment managers with $8.3trillion under management. More money than in most countries.
They are pioneers in offering crypto to their clients. When governments, economists, banks and other financial ‘experts’ were laughing at crypto, Fidelity’s CEO was championing this new asset class.
Other asset managers should be very concerned about their aggressive positioning in this area as they are going to take alot of their clients before they respond with an equivalent offer…..LOL.
Fidelity Digital Assets Research
Fidelity Digital Assets division released their latest 2020 research findings and their implications are massive for the crypto industry. Again, it should terrify other institutional investment managers who are not offering crypto to their clients.
Here are the core takeaways:
Institutional investors are Financial advisors, Pension funds, hedge funds, high net worth, endowments, foundations, etc. 800 in the USA and Europe were surveyed in early 2020.
- 36% already owned digital assets [crypto]. 60% believe they should own them.
LESSON — This is 66% growth in number of clients coming soon making a majority of this sector, meaning others will follow. These companies are sheep!
- Bitcoin and Etheruem where the key assets
LESSON — so these are the assets that will get the bulk of the new investment by the world’s leading investment sector].
- Companies open to digital assets said they expect 0.5% of portfolio allocated to digital assets
LESSON — Institutional Investors have $100trillion in assets in just OECD. 0.5% = $500billion. Times 60% = $300bn. Tom Lee, the leading Wall Street analyst says financial impact of investment is 10X so asset impact is $3trillion. This doesnt cover the rest of the world or the public. This one statistic provides confidence of a multi-trillion dollar crypto industry.
- Fidelity states ‘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’.
LESSON — Fidelity calls this an ‘investable asset class’. Its wealth-building. This is Dacxi’s view on crypto — wealth not lottery as most treat it.
- Companies buy because 1. uncorrelated to other asset classes 2. innovative tech, 3. high potential upside.
LESSON — its the perfect new asset class in these turbulent times versus shares and property.
- companies are concerned about 1. price volatility 2. market manipulation and 3. lack of fundamentals to gauge value
LESSON — these concerns are dropping and thus reflect timings to invest in crypto is now perfect. for everyone.
This is further validation that the tidalwave of institutional money is not just coming, it is starting to hit. The question for everyone is ‘can you afford not to ride this wave?’ and ‘what more evidence do you need to act?’