Institutional Investors Increasing Crypto Exposure as Confidence Grows, Sygnum Bank Survey Reveals

Institutional interest in cryptocurrency is on the rise. A recent survey from Sygnum Bank shows that 57% of institutional investors and finance professionals plan to increase their exposure to crypto assets. This shift reflects a significant change in how major players view the long-term value of digital assets.

The survey gathered insights from banks, hedge funds, multi-family offices, asset managers, and other investment firms. Conducted across 27 countries, it included over 400 respondents, all with more than a decade of experience. Notably, one-third of these participants are clients of Sygnum. The findings reveal a growing appetite for high-risk investments in crypto and an increasing confidence in this space.

Key points from the survey include that nearly 65% of respondents have a positive long-term outlook on crypto. Additionally, 63% plan to allocate more funds in the next three to six months. Meanwhile, 56% expect to adopt a bullish stance within a year, likely driven by Bitcoin's recent surge toward all-time highs.

More than half of the respondents already hold over 10% of their portfolios in crypto. Furthermore, 46% plan to increase their allocations in the next six months, while 36% are waiting for the right entry points. This commitment shows a strong belief that digital assets can yield better returns than traditional investments, a view shared by about 30% of those surveyed.

When it comes to investment strategies, single-token holdings are the most popular choice. About 44% of participants prefer investing in individual tokens. Actively managed exposure, where portfolios adjust based on market performance, follows closely with a 40% preference. This ongoing commitment to boosting crypto exposure, even during market fluctuations, highlights the view of digital assets as a “megatrend” investment.

Lucas Schweiger, Sygnum’s Digital Asset Research Manager, said, “This report illustrates progress and calculated risk, showcasing a variety of strategies to seize opportunities and, most importantly, a sustained belief in the market’s long-term potential to transform traditional finance.”

Layer-1 (L1) blockchains, which serve as foundational platforms for decentralized applications, rank as the top investment interest. Following closely are Web3 infrastructure and decentralized finance (DeFi) projects. Interestingly, tokenized assets, like corporate bonds and mutual funds, are gaining more traction than real estate investments. This shift shows how crypto adoption is influencing traditional sectors and offering new avenues for asset tokenization.

Previously, regulatory uncertainty was seen as the main barrier for institutional crypto investments. However, the survey indicates that 69% of respondents now perceive regulatory clarity as improving. Their concerns have shifted toward asset volatility and security. This change suggests a maturing market where effective risk management takes precedence over regulatory hurdles.

There’s a clear demand for better insights into market-specific risks. Up to 81% of participants stated that access to improved information would encourage them to increase their allocations. This trend highlights the importance of market intelligence, strategic planning, and technological research for institutions entering the crypto space.

The growing institutional enthusiasm for crypto reflects a broader trend in the U.S. Digital assets are no longer just speculative plays for individual investors. As reported by BeInCrypto, crypto is increasingly viewed as a long-term investment opportunity rather than a gamble.

Moreover, the introduction of Bitcoin ETFs (exchange-traded funds) has added credibility to crypto as an asset class. Political factors also play a significant role. President-elect Donald Trump’s recent victory could enhance crypto's status in the U.S. Some analysts believe that his pro-business approach may further increase institutional involvement in the sector. This could bring more visibility to the industry and lead to favorable regulations that encourage long-term investments in digital assets.

However, some market observers remain skeptical about the implications of rising institutional adoption of crypto. Companies like BlackRock and MicroStrategy are steadily growing their Bitcoin portfolios. One user noted, “Does this not defeat the whole purpose of ‘decentralization’? BlackRock will be the biggest holder; it doesn’t get much more centralized than that.”

The Sygnum survey aligns with recent findings from BeInCrypto, which reported that over 80% of crypto investors are optimistic about the future. Many believe that the current bull market is set to continue.