Blogs

Asian investors, who Fidelity Digital Assets surveyed for the first time this past year, are by far the most accepting of digital assets, with 92% of investors find digital assets appealing and 71%, currently invested in digital assets.

In comparison, the appeal has grown from 76% (2020) to 89% (2021) in Europe and those investors surveyed, have an allocation to digital assets increased annually from 45% to 56%, an 11-percentage point jump.

The U.S. also saw an increasing of appeal from 74% (2020), to 78% (2021) and continued acceleration in growth, with a six-percentage point increase from the 2020 survey to 33%.

The latest study reveals that across Europe and the U.S., there’s year-over-year growth across nearly every category, including perception and appeal, current exposure, and propensity for future investment. The results show that the market conditions of 2020 were a catalyst for many investors.

While each region weighed the appeals differently, these three characteristics, “high potential upside,” “innovative technology play,” and “uncorrelated to other assets,” were among the top three most cited in every market.

Overall, the top concerns cited by investors surveyed tend to align with the primary narratives frequently seen in media coverage of digital assets and bitcoin specifically. The top 5 barriers include:
·     Price volatility – 54%
·     Lack of fundamentals to gauge appropriate value – 44%
·     Market Manipulation – 43%
·     Regulatory Classification – 39%
·     Security of Asset Custody – 38%

The report reiterated that continued education is important because digital assets is a nascent industry and institutional investors as well as the financial services industry at large are still discovering the full potential of the underlying technology,

For full report, please go to: https://lnkd.in/eFaaK_QJ