Why are institutions accumulating crypto in 2022? Fidelity researcher explains

Cryptocurrency

Institutions’ investment in crypto has increased in 2022 despite the bear market, according to a recent survey by Fidelity Digital Assets. In particular, the amount of large investors betting on Ethereum have doubled in the last two years, as revelead by Chris Kuiper, the Head of Research at Fidelity Digital Assets in a recent interview with Cointelegraph.

“The percentage of respondents saying they were invested in Ethereum doubled from two years ago”, pointed out Kuiper. 

Kuiper pointed out that Ethereum’s appeal in the eyes of institutions is likely to increase even more now that after the Merge, Ether has become a more environmentally friendly, yield-bearing asset.

In general, according to the same survey, institutional players are accumulating crypto despite the crypto bear market. At the end of the second half of 2022, 58% of the institutions surveyed were holding cryptocurrencies, a 6 percent increase from last year. Moreover, 78% were planning to tip their toes in crypto in the future.

The main reason for that, the survey shows, is the conviction of the long-term upside potential of digital assets.

“They’re agnostic to some of this crazy volatility and price because they’re looking at it from a very long-term perspective”, Kuiper explained.

To learn more details about how institutional capital is flowing into crypto, check out the full interview, and don’t forget to subscribe to our channel!

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