IPC Insights: Connecting the Crypto World

Cryptocurrency trading is growing exponentially, and for institutional firms seeking alpha, it is rapidly moving up the strategic agenda. In response to growing institutional demand, a veritable plethora of institutionally oriented crypto exchanges have emerged over the past 24 months.

A survey from Fidelity Digital Assets, encompassing a range of nearly 900 investors including crypto hedge and venture funds as well as traditional hedge funds and other investor types, found that:

➤ 36% of institutional investors surveyed currently invest in crypto

➤ Crypto investments appeal to almost 80% of those surveyed

➤ More than 6 out of 10 investors believe that crypto has a place in portfolios

➤ More than 80% of investors expressed an interest in institutional investment products that hold crypto

The survey also found that the most common obstacles to inclusion of crypto in investment strategies and portfolios are price volatility, concerns around market manipulation, and lack of fundamentals and market data to enable valuation. Furthermore, trading firms and institutional investors – many of which have sophisticated trading strategies across other asset classes – want the same capabilities and the same access to markets and liquidity to which they are accustomed when trading traditional asset classes. Read More