Bitcoin, the first cryptocurrency, may have matured for traditional financial circles and is at a tipping point in terms of adoption by institutional players. This was stated by Tom Jessop, head of Fidelity Investments’ Digital Assets division, in an interview with MarketWatch.
He believes that a number of factors have driven growing interest in Bitcoin as an alternative asset, and that cryptocurrency adoption is now accelerating.
This environment is aided by ultra-low interest-rate policies, stimulus measures and the low yields on other assets traditionally treated as alternatives, said the head of Fidelity Digital Assets.
He expects that this environment will not change in the near future.
“I think we’ve reached a tipping point. We have roughly 12 years of experience with the Bitcoin blockchain since the genesis block in early 2009. And the pandemic, frankly, has been a catalyst for institutional adoption, in particular the use of cryptocurrency as digital gold,” Jessop said.
A Fidelity survey conducted earlier showed that almost a third of Fidelity’s major clients in Europe and the US have added digital assets to their portfolios.
Institutional demand for Bitcoin noted by JPMorgan. Bank analysts believe that interest will rise if the asset’s volatility normalises.