Crypto Institutional Investors Increase Allocations Amid Positive Market Sentiment
Swiss crypto bank Sygnum's annual Finance Survey indicates that institutional investors are increasingly interested in Bitcoin and altcoins. The survey reveals that 57% of institutional investors intend to increase their crypto allocations during the current bull run.
The survey shows a shift in interest and positive sentiment towards digital assets, with institutional players willing to make long-term investments and take on higher risks. Martin Burgherr, Chief Clients Officer at Sygnum Bank, attributes this optimism to clearer global regulatory frameworks, particularly the approval and launch of US Bitcoin Spot ETFs, which could enhance institutional adoption of digital assets.
This survey gathered insights from 400 institutions and professional investors across 27 countries. Of those surveyed, 57%, or 228 respondents, expressed a desire to increase their investments. Specifically, 31% plan to do so within the next quarter, while 32% aim to increase their investments over the next six months.
A notable 65% of respondents maintain a bullish long-term outlook, and 63% are considering increasing their digital asset allocation in the next three to six months. Only 5% of respondents indicated a willingness to reduce their crypto allocation. Among those planning to expand their exposure, 44% prefer single-token investments, while 40% favor actively managed strategies.
Additionally, 36% of respondents plan to hold their investments, awaiting further market confirmations.
Crypto Institutional Investors Hope for Greater Regulatory Clarity
The growing confidence among crypto institutional investors coincides with expectations for improved regulatory clarity under the Trump administration. Previously, ambiguous regulations and a restrictive investment environment led to decreased inflows. With pro-crypto regulations gaining traction, Sygnum noted that high market volatility, along with security and custody concerns, remain significant barriers for institutional investors.
An impressive 81% of crypto institutional investors believe that increased information about crypto assets could encourage greater investment. Investment preferences continue to favor scalable layer-1 solutions, particularly Bitcoin, Solana, and stablecoins. Additionally, institutional investors are showing heightened interest in Web3 infrastructure, driven by advancements in Decentralized Physical Infrastructure (DePIN) and artificial intelligence.
Conversely, interest in the DeFi sector is declining due to ongoing high-volume hacks that have resulted in losses exceeding $2.1 billion from the ecosystem.