THE ATTITUDE TOWARD CRYPTO OF INSTITUTIONAL INVESTORS IMPROVED

Last week, fidelity published a study that discovered that about 74 institutional investors plan on purchasing crypto in the future even though we are still in a crypto bear market. Just like you know that fidelity is one of the largest asset managers in the world, is discoveries should be taken seriously this finding is just one of many from its recent study. The fidelity digital asset arm recently allowed institutional investors to invest in Ethereum and later announced it would be employing another 100 employees. This show that the discoveries of this study are true.

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The fidelity asset study clearly states that it is for institutional use only. The fidelity asset study starts by explaining that fidelity has been taking surveys of institutional thoughts about the crypto since the year 2018. It is believed that institutional manipulation of the crypto market started with the induction of Bitcoin futures of the Chicago Mercantile Exchange back in the year 2017. The launch of the Chicago Mercantile Exchange Bitcoin futures was the then top for Bitcoin and its link to tech stocks has been increasing ever since.

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The study talks about the sentiments and behaviors of institutional investors during the first half of this year. This means that the research doesn't have any information about how sentiments have changed during the second half of the year. If you don't know already, the first half of 2022 for cryptocurrency ended with LUNA/UST crashing, three arrows capital going insolvent and several cryptocurrency platforms like Celsius crashing. In a simple explanation, it was basically the most bearish time for the crypto market and other assets in this cycle so far. The study also talked about how institutional investors felt during the second half of this year when many cryptos crashed.

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It sounds like the study will base more on the institution and will focus more on institutional perceptions of cryptocurrency adoption as well as the growth of crypto-related Tech such as decentralized finance. Tom Jessup who is the president of fidelity digital assets also said that the fundamentals of cryptocurrency remain strong despite the bear market and quote also said that institutions have become involved with the crypto market in recent years. Some statistics about 1,052 institutional investors fidelity surveyed were given. 410 were from the US, 359 were from Europe, and 283 were from Asia. It also says that institutions that took a fidelity survey of this report was talking between the beginning of January to the end of June.

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The institutional investors they are talking about here are financial advisers, family offices, crypto hedge and venture funds, traditional hedge funds endorsement, foundations, and not forgetting pension funds. The study also talked about institutional ownership of cryptocurrency and attitudes toward cryptocurrencies. The study reveals that the attitude toward crypto of institutional investors improved between the year 2021 and this year. In the over result, the positive perceptions of crypto by institutional investors increased from 47% to 57 but in the US, the percentage increased from 29% to 39%. Not forgetting Europe, it increases from 45% to 51%. On the other hand, in Asia, the positive perception decreased by 63% to below 60%.

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