Why are institutions accumulating crypto in 2022? Fidelity researcher explains

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 ( $2,235.97 ) 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 ( $2,235.97 ) doubled from two years ago”, pointed out Kuiper. 

Kuiper pointed out that Ethereum ( $2,235.97 ) ’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!