47% of Institutional Investment Companies Plan to Own Digital Currencies in the Near Future.
Fidelity Investments is one of the largest asset management companies in the world. It’s estimated the firm oversees more than $2.46 trillion in assets. Most of that money is being invested in traditional securities like stocks, bonds, mutual funds and index funds. But it should come as no surprise that in this day and age, more and more of that money is being allocated towards cryptocurrency.
Fidelity isn’t the only fund manager getting into the game. A recent report by the firm surveyed 441 institutional investing bodies, including pension funds, financial advisors, foundations and both traditional and crypto-specific hedge fund managers. It turns out that 22% of these 441 firms already own digital assets and 47% of respondents say they plan to add digital assets to their respective portfolios in the near future.
Custody and Execution Continue to Grow
At the moment, Fidelity Digital Assets and Bakkt are two of the most influential organizations laying the groundwork for institutional investment both in terms of providing custody services and the ability to execute large-volume trades that bring more institutional wealth into the crypto market.
Fidelity’s Head of Digital Assets is Tom Jessop. He believes that while the black market surrounding cryptocurrencies might still be keeping many retail investors on the sidelines, that trend is changing as the industry itself continues to mature.
He’s right. MicroStrategy Inc.’s recent commitment to Bitcoin is proof of that.
MicroStrategy Pours 30% of Its Assets into Bitcoin
MicroStrategy Inc. is a business analytics firm that is deciding to tie a big portion of its share price to the value of Bitcoin. The firm is now in possession of 21,454 bitcoins, which equates to more than $311 million Canadian. CEO Michael Saylor addresses the company’s decision in the following statement:
“This investment reflects our belief that Bitcoin, as the world’s most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
With more and more companies sure to follow in the footsteps of MicroStrategy, more institutional investment dollars are sure to head towards Bitcoin and other cryptocurrencies sooner rather than later. There is no better time than now to invest in Bitcoin with Netcoins.
Written by: Jack Choros
Writer, content marketing at Netcoins.