Crypto

Why are institutions hoarding crypto in 2022? A Fidelity researcher explains

Institutional investment in crypto grew in 2022 despite the bear market, according to a recent survey by Fidelity Digital Assets. In particular, the number of large investors betting on Ethereum has doubled over the past two years, as revealed by Chris Kuiper, Head of Research at Fidelity Digital Assets in a recent interview with Cointelegraph.

“The percentage of respondents reporting having invested in Ethereum has doubled compared to two years ago,” Kuiper pointed out.

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

Generally speaking, 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 held cryptocurrencies, an increase of 6% compared to last year. Additionally, 78% planned to get into crypto in the future.

The survey shows that the main reason for this is the belief in the long-term upside potential of digital assets.

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

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