Notably, the first half of the year brought the harshest phase of the crypto winter ever witnessed in the history of cryptocurrency. With the collapse of Terra and some crypto-related companies, the market was thrown into a state of crisis.
However, a report by Fidelity Digital Assets implies that the crypto fundamentals have been sustained through a bearish trend. This information came after the manager tagged the annual report 22 Institutional Investor Digital Assets Study. This is when the firm X-rayed the crypto industry from an institutional perspective.
according to ResearchThe crypto market has changed completely to overcome the impact of macroeconomics facing it recently.
Survey Indicates the Strength of Crypto Fundamentals
Tom Jessop, president of Fidelity Digital Assets, reacted to the research. According to him, digital fundamentals have stood firm during the storm. Furthermore, he added that the institutionalization of the cryptocurrency market for a few years has strengthened it to withstand the recent impacts.
According to Jessop, institutional investors showcase their experience through various market cycles. He mentioned that the attractive factors in the market retained their relevance as they moved into the bearish phase.
The research surveyed around 1,052 experts from various firms during the first half of the year. As a result, it revealed varying levels of crypto adoption among different types of investors.
according to Survey, adoption among institutional investors has increased in some sectors compared to the value of the year. The US and Europe recorded growth of 42% and 67%. Asian institutional investors declined marginally. But the overall result shows that they had the highest adoption of crypto assets with an allocation of 69%.
In terms of investor type, crypto adoption and consideration is topped by high-net-worth investors, venture capital investors, financial advisors and crypto hedge funds. Investors with low adoption are endowments and foundations, pension plans, family offices, and traditional hedge funds.
Fidelity Digital announced the provision of Ethereum trading options for its institutional market earlier this month.
Top Attractive Features for Institutional Investors
As institutional investors pointed out, Fidelity Digital’s research also reported some attractive features. The most attractive of the survey participants included innovation technology, decentralization and high potential upsides.
According to the survey, the surveyed investors reported that crypto has no correlation to other assets as it is the fifth most attractive feature. But the crypto markets have shown a high correlation with tech stocks this year.
Additionally, the research covered investors’ plans to invest or purchase cryptocurrency. It was noted that 74% of the participants still had such plans, a slight increase from the 71% that had entered the previous year.
The price is commendable, considering that 2021 was bullish, while the 2022 digital asset market was dominated by bears.
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