Institutions Increasingly Bullish on Crypto: Sygnum Survey Highlights Optimism and Growth
A strong wave of institutional confidence in crypto is building, with 65% of respondents expressing long-term bullish sentiments and 63% planning to increase their allocations to digital assets within three to six months. This comes from global digital asset banking group Sygnum’s latest annual survey, which paints a bright picture for the industry’s future.
Released on Thursday, the survey underscores a growing institutional appetite for cryptocurrencies. A notable 57% of respondents are preparing to expand their crypto exposure, driven by rising risk tolerance and faith in the long-term potential of digital assets.
Insights from Industry Experts
The survey gathered data from over 400 institutional and professional investors across 27 nations, each averaging more than 10 years of experience.
“This report reflects the market’s progress, strategic risk-taking, and the unwavering belief in the transformative potential of digital assets,” said Lucas Schweiger, Sygnum’s Digital Asset Research Manager, in a press release shared with CoinDesk.
Optimism Runs High
The bullish sentiment is palpable, with 65% of respondents optimistic about crypto’s long-term prospects. In the shorter term, 63% are considering increasing their allocations in the next three to six months.
Furthermore, 56% anticipate shifting to a bullish outlook within the year, with some already optimistic due to bitcoin’s (BTC) recent all-time highs. BTC’s price has surged over 20% in the past week, reaching above $93,000 amid expectations that President-elect Donald Trump may bring regulatory clarity to the sector. Year-to-date, bitcoin is up over 110%, fueled by the January launch of U.S.-listed spot ETFs, which have attracted billions in investments.
Over 70% of respondents stated that these ETFs have boosted their confidence in the asset class, while nearly 30% believe digital assets outperform traditional investments.
Preferred Investment Strategies
A significant portion of respondents—over half—already have at least 10% of their portfolios allocated to crypto. Among them, 46% are planning to increase their holdings within six months, while 36% prefer to wait for an optimal market entry.
Single-token investments, where investors focus on holding one cryptocurrency, remain the most popular strategy, chosen by 44% of respondents. Actively managed exposure follows closely, at 40%.
Layer-1 blockchains are the most appealing area of interest, followed by Web3 infrastructure and decentralized finance (DeFi). Tokenization of assets like equities, corporate bonds, and mutual funds has also gained traction, surpassing real estate, which led in 2023.
Challenges and Opportunities
Historically, fiduciary responsibilities, restrictive investment mandates, and limited access to regulated custodians have hindered institutional adoption of digital assets.
However, the narrative is shifting. With 69% of respondents citing improved regulatory clarity, concerns have shifted towards asset volatility, security, and custody.
Access to better information could further fuel adoption, with 81% of respondents indicating that improved market insights would encourage them to increase allocations. According to the report, this shift demonstrates that institutions are now focusing more on technological risks, strategic planning, and in-depth market analysis rather than solely regulatory barriers.
As institutions continue to embrace digital assets, the road ahead looks promising, albeit with hurdles that will demand innovative solutions and a deeper understanding of the market.
