Fidelity Research Showcases Interest Growth in Virtual Assets Adoption From Institutional Investors and Asset Managers

Fidelity Digital Asset Research has revealed information on the imminent mass adoption of digital assets by hedge funds, money managers, and institutional investors.

Fidelity Research Digs Deep

According to the data released by Fidelity, nearly half of institutional investors and money managers had made an investment in blockchain-based virtual assets in the last half of 2022. This accounted for a six-point increment from an annual tally. The fourth annual Fidelity Digital AssetsSM revealed that 58% of Institutional Investor Digital Assets of the money managers had tapped into virtual assets since the beginning of 2022.

Even though the crypto market has, so far, wiped out over 3 trillion dollars, the study concluded that 74% of entities and institutions under investigation declared to make an investment decision on virtual assets. Institutional investors surveyed adopted more digital assets in both the U.S. and Europe (67%).

The Actual Data From Fidelity Reports

The U.S. accounted for 42%, and Europe accounted for 67%, recording increased interest from the previous year. Asian institutional investors continue to lead the pack in embracing blockchain technology and digital assets among the regions studied. Asia recorded almost 69% despite reporting a slight drop in adoption.

Tom Jessop, president of Fidelity Digital Assets, made a public statement on the results released by Fidelity. He stated that the last leg of the crypto market bull run coincided with the increased number of sophisticated investors managing billions of dollars all over the regions under survey. The portion pushed Bitcoin to its highest price in history, driving the total market cap to around four trillion dollars. Citing the recent bearish meltdown, Tom insisted that the tokenomics of digital assets such as cryptocurrencies hold for a bright future.

In a statement, Tom said:

“The increased adoption reflected in the data speaks to a strong first half of the year for the digital assets industry. While the markets have faced headwinds in recent months, we believe that digital assets fundamentals remain strong and that the institutionalization of the market over the past several years has positioned it to weather recent events.”

Massive Digital Assets Adoption Underway

Fidelity study firmly holds ground. The bearish market sentiment on-going has sparked a lot of attention, especially from institutions looking into tapping the digital space. 

Many activities have been witnessed in the NFT market as companies scramble to get a share of the virtual world. Even though governments continue to regulate decentralization heavily, the world has continuously displayed interest in the distributed ledger technology by adopting it and implementing it in day-to-day operations.

Adidas, a leading footwear and clothing manufacturer, sold a whopping $22 million in Non-Fungible Tokens. On the other hand, Ford Motors, a top automaker, has launched 19 trademark applications for virtual cars.

NFTs aside, more partnerships have been observed to increase the mass adoption of crypto payments. For instance, Binance, the most extensive digital asset products, and service provider, partnered with Visa and Mastercard earlier to enhance crypto payments and exchange deposits.