Institutional investors plan more crypto allocations
Growing confidence in Bitcoin (CRYPTO:BTC) and the cryptocurrency market is prompting institutional investors to plan increased long-term investments in crypto.
“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,” stated Martin Burgherr, chief clients officer at Sygnum Bank.
According to Sygnum’s annual Future Finance survey, released on Nov. 14, 57% of institutional investors plan to increase their crypto allocations, with 31% intending to do so within the next quarter and 32% within six months.
The survey collected responses from 400 institutional investors across 27 countries, indicating a positive shift in market sentiment toward digital assets.
The survey found that only 5% of institutional investors plan to decrease their crypto exposure, while 2% remain undecided.
Of those planning to increase their allocations, 44% prefer single-token investments, while 40% are choosing actively managed strategies.
Sygnum noted that 36% of respondents holding their current positions might be waiting for further market confirmation or optimal market timing before increasing their investments.
Although regulatory clarity has helped mitigate barriers to entry, market volatility and concerns about security and custody still pose challenges.
Most institutional investors (81%) believe that better information on crypto would encourage them to invest more, showing a shift in focus from regulatory issues to strategic and market-specific risks.
Interest in scalable layer-1 solutions such as Bitcoin, Solana, and stablecoins remains high, along with Web3 infrastructure driven by Decentralised Physical Infrastructure (DePIN) and artificial intelligence.
Interest in decentralised finance has declined, attributed to high-profile hacks that have drained around $2.1 billion from the ecosystem.
Compared to 2023, institutional investment preferences have shifted from real estate to equities, corporate bonds, and mutual funds.
At the time of reporting, the Bitcoin price was $91,162.07.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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