A recent survey by Coinbase, assisted by EY-Parthenon, shows that institutional investors are set to increase their stake in digital assets by 2025. Despite technical and regulatory hurdles, confidence in cryptocurrencies among large financial firms is on the rise.
Growing Institutional Confidence in Cryptocurrencies
The Coinbase Institutional Investor Survey, released on March 18, 2025, indicates that demand for cryptocurrencies among institutional portfolio managers continues to grow. Survey data from 352 firms reveals plans to allocate more than 5% of their assets under management to crypto investments. A Coinbase representative stated, “The growing appetite for crypto within institutional portfolios suggests that the sector is maturing.”
Explosive Growth in DeFi and Stablecoins
Stablecoins and DeFi have captured significant attention from institutions. 84% of institutional investors are using stablecoins for purposes beyond basic trading. The main uses reported are generating yield, conducting currency exchanges, and managing cash balances. DeFi is expected to see user interaction increase from 24% to 75% in the coming two years.
Regulatory Uncertainty as a Key Concern
While institutional interest in crypto continues to grow, regulatory legislation remains a significant barrier. Changing regulations complicate the decision-making process for new market entrants. However, professional confidence in the profit potential from digital assets offsets regulatory concerns.
The demand for cryptocurrencies among institutional investors highlights the significant growth potential of the crypto industry. Despite regulatory challenges, organizations continue to add digital assets to their portfolios, making them an essential part of future investment strategies.
