Most asset managers still in ‘education mode’ on crypto, says Fidelity


Michael Durbin, managing director of Fidelity Institutional, believes that many asset managers and financial advisors do not yet have enough in-depth knowledge when it comes to digital assets.

While some asset managers are now well versed in cryptocurrencies and the underlying technology, many others are still lagging behind, he said. In an interview for Reuters Digital Asset Week, Durbin noted:

They know what they are doing and, more importantly, so do their end investors, but the vast majority are still in educational mode.

Fidelity Institutional is a division of Fidelity Investments, one of the world’s largest asset managers, with $9.8 trillion in assets at the end of 2020. It was also one of the first to take cryptocurrencies seriously, launching a subsidiary in the fall of 2018 to focus on this new asset class.

While a knowledge gap remains among money managers, Durbin noted that demand for digital assets has increased among large investors. Tesla and Bank of New York Mellon are just two of the latest household names to enter the crypto space during the historic bitcoin (BTC) bull market. The leading cryptocurrency has seen its value increase more than sevenfold in the past year, reaching the $61,200 mark earlier this month.

In October 2020, Fidelity Digital Assets published a report predicting that increased interest from institutional investors could increase bitcoin’s market capitalization by hundreds of billions of dollars in the near future, claiming that portfolio managers could significantly increase their returns by disposing of a portion of their positions in bitcoin.

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