- According to Manuel Nordeste, defined benefit plans are talking about crypto assets.
- Nordeste thinks small-scale but sophisticated investors are more likely to buy into crypto.
- Fidelity’s survey showed that 80% of high-net-worth individuals viewed digital assets positively.
According to Manuel Nordeste, vice president at Fidelity Digital Assets, defined benefit plans and other pension funds have started talking to their investment committees about crypto assets. Nordeste made the statement during an event in London. In his opinion, small-scale but sophisticated investors like family offices and high-net-worth individuals are more likely to buy into crypto.
Meanwhile, the investment expert noted that his company, Fidelity Digital Assets, is starting to have conversations with larger, real-money institutional investor types, compared to the smaller-scale investors they focused on in their early days. He explained that in the past, Fidelity worked with small specialized asset managers, hedge funds, and the big blue-chip hedge funds.
However, Nordeste highlighted that Fidelity is getting some of the high-end clients and other corporate establishments. Citing a survey conducted by the investment firm, Nordeste noted that 80% of high-net-worth individuals viewed digital assets positively, compared to 23% of pension plans. Furthermore, 48% of those respondents invested in digital assets, with just 7% of pension plans invested in the same.
Explaining further, the Fidelity vice president noted that smaller firms are more prone to taking risks since they either have no investment mandates or the mandates they have are easy to navigate. Comparing them to pensions, he observed that it takes longer for the latter to adjust, and there are fundamental requirements to be in the market.
Last Thursday, BlackRock, one of Fidelity’s rivals, said it expects to see institutions, including pension funds, start trading the Bitcoin spot market. The ETF provider noted that it expects the institutions to access the products through the ETF products approved by the U.S. Securities and Exchange Commission (SEC) in January.
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