A study conducted by the Swiss crypto bank Sygnum shows a growing interest in cryptocurrencies among institutional investors, driven by improved regulatory conditions.
A Generally Positive Outlook on Crypto
The study included responses from 400 institutional investors across 27 countries. Of those, 57% plan to increase their crypto allocations soon. Only 5% of respondents plan to decrease their crypto asset holdings. Among those planning to increase investments, 44% will choose single-token investments, while 40% prefer actively managed crypto investments.
Regulatory Clarity Paves the Way for Increased Crypto Exposure
Historically, unclear regulations and restrictive investment mandates have been major barriers for traditional investors. However, today pro-crypto regulations create more favorable market conditions. Despite this, institutional investors remain concerned about market volatility, security, and custody issues. 81% of respondents believe better information on crypto will lead to increased investments.
Investment Preferences and Trends
Institutional investors prefer scalable layer-1 solutions like Bitcoin and Solana, as well as stablecoins. Along with crypto assets, interest in Web3 infrastructure is growing. Conversely, interest in decentralized finance is declining due to high-volume hacking attacks amounting to approximately $2.1 billion. In 2023, investor interest has shifted from real estate to equities, corporate bonds, and mutual funds.
The rise in regulatory clarity and technology stabilization creates favorable conditions for increased institutional crypto investments, potentially impacting the market significantly in the coming years.
