SUMMARY
- 57% of institutions plan to increase crypto allocations, with 65% bullish on long-term prospects.
- Sixty-nine percent see regulatory clarity, but major concerns remain around volatility.
According to Sygnum’s 2024 survey, which collected data from more than 400 institutional and professional investors in 27 countries, institutions are becoming more and more prepared to go deeper into the cryptocurrency market. According to this survey, 57% of respondents intend to increase their holdings of digital assets in light of the present market boom. Long-term market confidence and a readiness to accept measured risk are the two main forces behind this change. Remarkably, 63% of respondents are thinking about increasing their allocations in the next three to six months, and 65% of respondents have an optimistic long-term outlook.
The recent surge in bitcoin prices, surpassing $93,000 due to expectations of regulatory clarity under President-elect Donald Trump, has also influenced these sentiments. Bitcoin’s price has jumped over 20% in the past week and has risen more than 110% year-to-date, bolstered by the debut of U.S.-listed spot ETFs. These ETFs have significantly impacted institutional trust, with over 70% of survey participants indicating increased confidence in digital assets as a result.
Regarding strategy, over 50% of the participants disclosed that they presently dedicate more than 10% of their funds to cryptocurrency. While 36% are taking a wait-and-see stance in search of the best entry points, nearly 46% are contemplating additional exposure increases. 44% of participants still prefer single-token investments, with 40% choosing actively managed portfolios as a close second. More people are interested in Layer-1 blockchain initiatives than in Web3 infrastructure and decentralized finance (DeFi). A change in tokenization preferences was also noted by the poll, with mutual funds, corporate bonds, and stock surpassing real estate as the most preferred investment categories.
While regulatory clarity has improved, cited by 69% of respondents, asset volatility is now the top concern, replacing past worries over unclear regulations. Security and custody are also significant, albeit secondary, apprehensions. A notable 81% indicated they would consider increasing crypto exposure if better information were available, highlighting a shift towards market-focused risk assessments and deeper strategic research.
Overall, the Sygnum survey underscores growing institutional confidence in crypto investments. Enhanced regulations and market maturity continue to pave the way for broader adoption, suggesting digital assets may soon integrate more prominently into mainstream finance.