Loyalty: 58% of investors have money in crypto
A rocky cryptocurrency market hasn’t been enough to deter people from investing in the digital currency, a new study from Fidelity Investments has found.
The company’s findings – published on Thursday (October 27) – showed that 58% of institutional investors invested in digital assets during the first half of 2022, up six points from the previous year, while 74% plan to invest in the future.
“While markets have faced headwinds in recent months, we believe digital asset fundamentals remain strong and the institutionalization of the market over the past few years has positioned it to weather recent events,” Fidelity Digital Assets president Tom Jessop said in news. release. “Institutional investors are experienced at managing through cycles, and the largely inherent factors they cited as appealing in this study are likely to remain as the market emerges from this period.”
The survey found that ownership of digital assets is higher in Asia (69%) than in Europe (67%) or the US (42%). Europe and the US have seen 11-point and 9-point increases in ownership, respectively, since 2021. In both cases, this increase was mainly driven by wealthier investors and – among Europeans – financial advisers.
The findings came a day after comments by Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero that her agency could reduce the risks associated with crypto by regulating the industry.
“Congress can address financial stability risks by providing additional authority to the CFTC,” she said at the International Swaps and Derivatives Association conference in New York.
She added that the US should not rush into regulation and that any regulations should treat the crypto industry the same as the traditional financial industry.
Goldsmith Romero pointed out that traditional financial organizations have begun to show greater interest in crypto, saying that interconnections between the two industries will increase risk.
“[T]spring, unregulated crypto markets revealed their vulnerability to similar financial stability risks as traditional finance, with parallel themes from the 2008 financial crisis, Goldsmith Romero said.
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