A study by Coinbase and EY-Parthenon reveals that most institutional investors plan to increase their allocations to cryptocurrencies by 2025.
Plans for Investment Growth
According to the report published on Coinbase's blog on Mar. 18, 83% of institutional investors intend to increase their crypto holdings. The study surveyed 352 companies, and 59% of them plan to allocate at least 5% of their assets to digital currencies this year. This indicates that crypto is becoming a core part of institutional portfolios.
Interest in Stablecoins and DeFi
84% of investors are already using or considering stablecoins, which have gained significant traction over the past year. Interest in decentralized finance (DeFi) is also growing, with engagement expected to rise from 24% to 75% in two years. This is attributed to opportunities in lending, derivatives, and staking markets.
Overcoming Growth Challenges
Despite optimism, there are obstacles to navigate. The most prominent concerns include regulatory uncertainty (52%), market volatility (47%), and secure custody (33%). 68% believe that clearer regulations will aid future market growth.
The study highlights a continuing increase in institutional interest in cryptocurrencies, despite regulatory and market challenges. This suggests a gradual integration of digital assets into traditional financial systems.
