Source: Adobe / Jonas Weinitschke
Around 52% of the investors surveyed have secured exposure to cryptocurrencies this year, with European and Asian investors leading the way, according to a recent survey by a financial services provider focused on digital assets Fidelity digital assets.
With 44% of investors surveyed saying that market conditions in 2020 will increase their likelihood of investing in digital assets, crypto markets are likely to continue their rapid expansion in the years to come, they said.
The survey, conducted between December 2020 and April 2021, is based on 1,100 blind online and telephone interviews with professionals representing a large number of high net worth individuals and institutional investor representatives from the US, Europe and Asia.
In Europe, the surveyed investors with an allocation to digital assets increased from 45% in 2020 to 56% this year, an increase of 11 percentage points.
For the second year in a row, European investors surveyed showed a greater propensity for digital assets than their US counterparts.
However, investments in digital assets in the US “also saw sustained growth acceleration, up six percentage points from the 2020 survey to 33%. Asia has the highest adoption rate, with 71% of surveyed investors currently investing in digital assets, ”said Fidelity Digital Assets.
About 18% of US respondents said they bought or invested in digital assets through an investment product this year, compared to 8% in 2020.
“This surge in investment product adoption is likely to be aided by an increase in the number of trust-based public investment products now available in the US and a number of private fund offerings issued by managers over the past year,” the report said .
European investors increasingly prefer to buy digital assets directly: 41% of respondents invest this way, compared to 29% in 2020, and the allocation to investment products also increased from 14% to 29% year-on-year.
In Asia, 52% of the surveyed investors said they bought digital assets directly, while 39% expressed their allocation through an investment product, according to Fidelity Digital Assets.
Investors in “the US seemed to lag behind Europe and Asia in direct investment, with only 21% of the surveyed investors holding Bitcoin in a portfolio, compared with 46% and 45% in Europe and Asia, respectively.”
“We believe this continuing trend could be partly due to a greater number of regulated investment products that provide access to digital assets in European markets that can provide a familiar structure for retail investors and help build trust with institutions. In addition, European investors have in the past ”
are more likely to have alternative investments in their portfolios than US investors, who have seen a lot of upside potential in stocks and bonds in particular over the past decade, “said Fidelity.
Bitcoin (BTC) remains the top cryptocurrency of choice in the three regions as it is held by 21% of investors surveyed in the US, 46% in Europe and 45% in Asia.
Ethereum (ETH) ranks second with 10% in the US, 27% in Europe and 22% in Asia and Litecoin (LTC) comes third with 6% of investors surveyed in the US, 15% in Europe and 14% in Asia, announced the company.
It is noteworthy that US investor ownership of Bitcoin has increased slightly by 2 percentage points year over year.
“In Europe, Bitcoin and Ethereum were the most important drivers for increasing acceptance. Bitcoin adoption rose 13 percentage points from 33% in the 2020 survey, while Ethereum adoption more than doubled by 13%, ”according to the survey.
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