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Number of Institutions Buying Crypto Futures Doubled in 2020: Fidelity Report

Fidelity’s digital asset subsidiary found the number of U.S. institutional investors buying crypto derivative products jumped significantly in 2020.

19.06.2020 News
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Fidelity’s digital asset subsidiary found the number of U.S. institutional investors buying crypto derivative products jumped significantly in 2020.

Fidelity Digital Assets said institutional sentiment was improving in relation to cryptocurrencies. “[A]lmost 80% of investors surveyed finding something appealing about the asset class,” it said.

But what’s far more interesting is right down in the guts of the survey. Talking about how institutional investors are increasing their portfolio allocation to cryptocurrencies – the top one, unsurprisingly, being bitcoin – it goes on to say, “22% of U.S. respondents invested in digital assets have exposure via futures, which is a substantial increase relative to 9% of U.S. investors surveyed in 2019.”

The survey, which took place between November and March, spoke to 774 institutions in the U.S. and in Europe, with 393 coming from the U.S. That means around 86 U.S. institutions traded crypto futures this year, compared to just 40 in the 2019 survey.

Fidelity’s report ventures that the “recent market growth in the number of crypto native and incumbent service providers offering cash and physically settled futures contracts” may help explain this large increase in crypto futures exposure among institutions.

Read More From Coindesk website: Number of Institutions Buying Crypto Futures Doubled in 2020: Fidelity Report