Insights on Institutional Crypto Investments in 2024

2024 has been an active year for crypto investments, with institutional interest in cryptocurrencies on the rise. Connor Farley from Truvius breaks down the latest trends, interests, and perceptions in the industry.

Since 2019, Fidelity’s institutional business has been conducting surveys to measure sentiment and adoption of crypto investing among institutional investors globally. The 2023 survey showed a mixed outlook towards crypto, but recent market developments have likely shifted perceptions significantly.

With the SEC’s approval of spot bitcoin and Ether ETFs, the market capitalization of crypto has soared, with Bitcoin reaching nearly $74,000. This surge has raised questions about regulatory concerns and price volatility in the industry.

Marissa Kim from Abra Capital Management provides insights on supporting clients’ investment interests in cryptocurrencies. She emphasizes the importance of diversifying exposure to digital assets beyond just Bitcoin, considering assets like Ethereum and Solana for institutional applications and consumer payment applications.

In the Ask an Expert section, Kim advises financial advisors to consider factors like risk tolerance and wealth management goals when recommending digital assets to clients. She also highlights the benefits of holding actual digital assets over ETFs, such as 24/7 trading and yield generation opportunities.

As the digital asset market transitions from early adoption to mass adoption, institutions are exploring a variety of investment structures beyond ETFs, including SMAs, private funds, and VC offerings. The industry is also seeing advancements in blockchain data providers and digital asset managers, which may help institutions become more familiar with crypto fundamentals and valuation methods.

Overall, 2024 is shaping up to be a pivotal year for institutional investments in crypto, with evolving trends and opportunities for investors to explore new avenues in the digital asset space.