Compared to just 23% of pension plans, a whopping 80% of high-net-worth individuals hold a positive view of crypto assets, according to recent findings. Pension funds, traditionally known for their conservative investment strategies aimed at safeguarding retirees’ life savings, are now showing signs of increased openness towards exploring the world of cryptocurrencies. Manuel Nordeste, the Vice President of Fidelity Digital Assets, revealed during a London event that investment committees of defined benefit plans and other pension funds are beginning to discuss the potential of crypto assets. It appears that cryptocurrency is capturing the attention of informed investors, particularly family offices and high-net-worth individuals.
Nordeste reflected on the early days of Fidelity Digital Assets, noting that the company initially attracted interest from family offices, specialized asset managers, and hedge funds, eventually expanding its reach to larger blue-chip hedge funds.
The market study conducted by Fidelity Digital Assets reveals that while 80% of high-net-worth individuals have a favorable opinion of crypto assets, only a meager 7% of pension funds have ventured into this realm. This stark contrast can be attributed to the fact that smaller enterprises, such as family offices, have more flexibility and a greater willingness to take risks, as they are often not subject to as many stringent investment requirements. On the other hand, pension programs are bound by time-consuming processes and specific market conditions.
Pension funds prioritize a conservative approach in order to protect the future life savings of retirees. The uncertain regulatory environment surrounding innovative and highly volatile assets, including cryptocurrencies, has further reinforced their cautious stance.
Today’s crypto news also features the concerns raised by a CFTC Commissioner regarding the risks associated with artificial intelligence in decentralized finance (DeFi).