80% of high-net-worth individuals have a positive view of cryptocurrencies, compared to only 23% of pension plans, according to a recent study by Fidelity Digital Assets. Manuel Nordeste, VP of Fidelity Digital Assets, noted that cryptocurrency is attracting the attention of knowledgeable investors such as family offices and high-net-worth individuals.
Pension funds, on the other hand, tend to follow conservative strategies to protect the life savings of retirees. However, there is a growing openness among pension funds to explore crypto asset investments. Nordeste observed that investment committees of defined benefit plans and other pension funds are in the early stages of discussing crypto assets.
Fidelity Digital Assets has gained attention from various investors since its launch in 2018, including family offices, specialist asset managers, hedge funds, and larger blue-chip hedge funds. The market study by Fidelity Digital Assets also revealed that more than half of high-net-worth individuals have invested in digital assets, while only 7% of pension funds have done the same.
Smaller enterprises, like family offices, are often more agile and willing to take risks due to fewer strict investment requirements. On the other hand, pension funds face more time-consuming and market-specific considerations. The cautious approach of pension funds can be attributed to concerns about the risks associated with innovative and highly volatile assets, particularly in an uncertain regulatory environment.
In other news, a CFTC commissioner has raised concerns about the risks of artificial intelligence in decentralized finance (DeFi).
