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23 January 2022
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Fidelity reveals increased institutional interest in Bitcoin (BTC)

  • Fidelity Digital Assets has seen an increased interest from institutional investors in Bitcoin and other cryptocurrencies.
  • A full report, to be released, will highlight the different groups of institutional investors interested in Bitcoin.

Institutional interest in Bitcoin and other cryptocurrencies has been growing in 2020. Despite the crisis caused by the coronavirus pandemic and the warnings of non-investment in cryptocurrencies from giants such as Goldman Sachs, a new report by Fidelity Digital Assets confirms this trend.

Institutional interest in Bitcoin and Ethereum increases

In a series of tweets published a few days ago, the Fidelity Digital Assets announced that it will publish a detailed report on the growing interest of institutional investors towards Bitcoin and other cryptocurrencies. The investment company is part of Fidelity Investments, a firm that handles about $7 trillion for its clients. Fidelity Digital Assets stated:

(…) digital assets continue to gain adoption and interest by a variety of institutional investors.

In December 2019, the investment firm announced its plans to support further cryptocurrencies, specifically Ethereum. The president of Fidelity Digital Assets, Tom Jessop, said that the crypto custody service is an essential base for institutional investors to enter the crypto market.

In that sense, Jessop stated that investors who have entered the market are part of various segments or groups. In addition, Jessop has reaffirmed his interest in continuing to understand what obstacles need to be overcome for adoption to continue to grow:

This research will help us and the industry better understand the obstacles in the way of adoption and what institutions find most appealing about digital assets. Our findings will highlight the fact that institutions cannot be summed up as one segment, and that access to digital assets cannot be as simple as one product or asset offering.

The full report will be published at the end of June. In the meantime, the asset management firm Grayscale continues to increase its share on the market. Data published in April indicate that the investment firm now owns 1% of the circulating ETH supply. Since then, Grayscale has not stopped its buying frenzy and has bought up all the Bitcoin that has been minded since the halving, 12,337 BTC. In addition, it bought almost 7,000 BTC for a total of 18,810 BTC purchased in recent months.

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