The majority of institutional investors seem to have declared that they are ready to invest in or buy crypto.
According to a study conducted by Coalition Greenwich on behalf of Fidelity Digital Assets, it seems that 7 out of 10 institutional investors have confirmed that they are ready to invest in crypto by the end of 2021.
Specifically, 1100 institutional investors globally were interviewed between December and April, and more than half revealed their positive intention in this regard.
These are high net worth investors, family offices, digital and traditional hedge funds, financial advisors and endowments.
Not only that, the report specifies that around 90% of these types of investors said they expected their companies’ or clients’ portfolios to include investments in digital assets within the next five years.
Of course, during the interviews, many cited price volatility as the obstacle to investment, especially for new entrants. And indeed, despite the mainstream interest, crypto prices and trading volumes have plummeted. Bitcoin is down about 50% from its April highs.
But for those taking courage, there are now plenty of crypto-related financial instruments available. Indeed, while some investors have confirmed their interest in buying cryptocurrencies directly, others prefer exposure instruments, such as shares in cryptocurrency companies or other investment products.
Institutional investors and exposure to crypto: the case of Grayscale
One of the most successful financial products for crypto exposure is that offered by the Grayscale platform, with its services such as the Grayscale Bitcoin Trust (GBTC) which has already attracted institutional investors.
By the end of June this year, Cathie Wood’s Ark Invest had bought more than a million of Grayscale’s BTC-related shares, all while the price of bitcoin had fallen below $30,000. Banking giant Morgan Stanley also dove into the crypto world with the purchase of more than 28,000 GBTC shares.
At the beginning of this month, US Senator Pat Toomey was found to be following the Grayscale Trust’s trend, having already bought GBTC but also Ethereum-related Grayscale shares (ETHE) a month earlier.
The report states that the amount invested by the politician from the States appears to be around $15,000 and that both BTC and ETH are expected to be at a loss.
Due to this strong interest of institutional investors in the crypto world, Grayscale wanted to launch a new exposure product linked to decentralized finance or DeFi.
Today, the platform, which is at the forefront of offering crypto-related services to crypto investors, launched the DeFi Fund, which follows CoinDesk’s DeFi Index. With ten new DeFi tokens, Grayscale expands the investment possibilities to its accredited institutional investors while remaining connected to the crypto world.
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