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Sygnum Bank’s annual survey reveals that 57% of institutional investors plan to increase their crypto allocations, with a growing appetite for Bitcoin and altcoins.
Key Notes
While 65% of respondents maintain a bullish long-term outlook, 63% are considering expanding digital asset holdings.Although pro-crypto regulatory developments are boosting confidence, Sygnum notes that market volatility, security, and custody concerns remain.Moreover, institutional investors have decreasing interest in DeFi due to ongoing security breaches.Swiss crypto bank Sygnum recently conducted its annual Finance Survey showing that the crypto institutional investors have a growing appetite for Bitcoin BTC $91 582 24h volatility: 4.5% Market cap: $1.81 T Vol. 24h: $137.44 B and altcoins. Furthermore, the survey shows that 57% of institutional investors plan to boost their crypto allocations amid the bull run.
This survey also highlights the shifting interest along with a positive sentiment for digital assets. It also shows that institutional players now have a growing willingness to take long-term bets and higher risks.
Martin Burgherr, Chief Clients Officer at Sygnum Bank, attributes the positive market sentiment among institutional investors to clearer regulatory frameworks worldwide. He wrote:
“Among the most important is perhaps the approval and the subsequent launch of the US Bitcoin Spot ETFs, which has the potential to accelerate the institutional adoption of digital assets.”
This annual survey collected insights from 400 institutions and professional investors, spanned across 27 countries. As said, 57% of them, or 228 respondents showed a willingness to increase their bets. Of the, 31% are willing to increase their bets in the next quarter, while 32% want to increase their bets in the next six months.
A significant 65% of survey respondents hold a bullish long-term outlook, with 63% considering increasing their digital asset allocation over the next three to six months.
Showing off their high-risk appetite, only 5% of the respondents are willing to decrease their crypto allocation. Among institutions planning to increase their crypto exposure, 44% prefer single-token investments, while 40% choose actively managed exposure as their primary investment strategy.
Furthermore, as per the Sygnum Bank survey, 36% of the respondents plan to continue their holdings while waiting for further market confirmations.
Crypto Institutional Investors Hope for Greater Regulatory Clarity
The rising confidence among crypto institutional investors comes as the hope for better regulatory clarity under the Trump administration. So far, unclear regulations and a restrictive investment environment led to a drop in inflows.
With pro-crypto regulations on the rise, Sygnum highlighted that high market volatility, along with security and custody concerns, continue to be primary barriers for institutional investors.
A staggering 81% of crypto institutional investors believe that more information about crypto assets could lead them to invest more.
Investment preferences in the crypto space remain strong for scalable layer-1 solutions, notably driven by Bitcoin, Solana, and stablecoins. Beyond direct crypto-asset exposure, institutional investors are increasingly interested in Web3 infrastructure, fueled by growth in Decentralized Physical Infrastructure (DePIN) and artificial intelligence, according to Sygnum.
On the other hand, interest in the DeFi sector is waning amid constant high-volume hacks which have recently drained more than $2.1 billion from the ecosystem.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
