Ethereum Becoming More Popular with Institutions, Fidelity Survey Shows


The second largest cryptocurrency, Ethereum, has seen its U.S. ownership rate increase by five percentage points, according to a recent survey by Fidelity Investments.

Institutional investors continue to favor Bitcoin and Ethereum above all other options.

It is more common for people in Asia and Europe than in the United States to own cryptocurrencies, with 65% and 42% of the populations of those regions respectively owning cryptocurrency.

Despite a major market rout in 2022, cryptocurrency adoption increased significantly.

About eighty percent of institutional investors think cryptocurrency holdings are a good idea.

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Although cryptocurrency prices have dropped significantly from their highs in 2021, Fidelity Digital Assets president Tom Jessop believes the underlying technology and market fundamentals are still strong. Jessop elaborated by saying that the growing institutional support for cryptocurrencies has made them more resilient to prolonged price drops.

As part of its ongoing cryptocurrency push, Fidelity has decided to add 100 new employees to its cryptocurrency division.

Investors are still on sidelines

However, many large financial institutions still avoid cryptocurrency investments.

According to the survey, the majority of people are worried about security and price volatility.

While the cryptocurrency market has matured over the past few years, some still hold the view that it is heavily manipulated.

Considering the institutionalization narrative was a major factor in the preceding bull run, the industry will need to address these concerns if it is to attract more traditional investors.






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