Institutions continue to accumulate cryptocurrency in 2022 despite the market downturn. A Fidelity survey showed that they do this because they have a very long-term view of crypto. Most of all, over the past two years, their involvement in Ethereum has increased.
According to a recent survey conducted by Fidelity Digital Assets, in 2022, institutional investments in crypto increased despite the bear market. In particular, the number of large investors betting on Ethereum has doubled over the past two years, as revealed 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 noted that the attractiveness of Ethereum in the eyes of institutions is likely to increase even more now that, after the Merge, Ethereum has become a more environmentally friendly, secure, and profitable asset.
In general, according to the same survey, institutional players are hoarding crypto despite the crypto bear market. At the end of the second half of 2022, 58% of institutions surveyed held cryptocurrencies, up 6% from last year. Moreover, 78% planned to get involved in cryptography in the future. The survey also showed that the main reason for this is the belief in the long-term growth 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.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.