A recent report reveals a strong bullish sentiment among institutional investors toward cryptocurrencies, with 57% planning to increase their long-term crypto allocations. The Future Finance report from digital asset bank Sygnum also shows that 65% of respondents are optimistic about crypto’s long-term potential, with 63% intending to raise their allocations in the next 3-6 months. According to Sygnum’s findings, investor confidence could drive a major market shift in 2025, with sentiment turning “overwhelmingly bullish” as crypto gains traction in traditional finance.
Growing Trust in Crypto Markets Despite Short-Term Volatility
Conducted among over 400 respondents from 27 countries—including banks, hedge funds, and asset managers—the survey indicates that 83% of these institutions are already “crypto-activated,” meaning they currently invest in digital assets. More than half (53%) of these portfolios allocate at least 10% to crypto assets, showing an increased comfort with the volatility in this sector. Notably, 79% of respondents plan to increase their crypto investments within the next year.
While there’s significant confidence in crypto’s potential, some investors remain cautious, monitoring macroeconomic factors and geopolitical risks that could impact short-term performance.
Macro Factors and Regulatory Progress Boosting Optimism
Approximately 46% of respondents plan to increase allocations in the next six months, while 60% anticipate “flipping bullish” by next year. The report highlights that certain factors—like China’s stimulus initiatives, expected U.S. rate cuts, and improved liquidity conditions—may accelerate crypto investments, especially in Bitcoin and Ethereum ETFs. Concerns over geopolitical instability have led many investors to view crypto as a safe-haven asset and macro hedge.
Key Drivers: Portfolio Diversification and Growing Access
According to the report, most investors (54%) are drawn to crypto for its portfolio diversification potential, followed by a higher risk appetite and access to more regulated services. With 81% stating that more accessible information could encourage further investment, the report suggests that regulatory advancements have also boosted confidence. For those currently outside the crypto market, 27% plan to enter within the next 12 months, with two-thirds of undecided investors likely to revisit crypto as a hedge.
Strong Interest in Layer 1 Assets and Established Protocols
Most investors show interest in Layer 1 coins (76%) like Bitcoin and Ethereum, along with Web3 infrastructure (55%). Preference leans toward well-established blockchain protocols, with 91% investing in coins such as Bitcoin, Ethereum, Solana, and BNB. Additionally, stablecoin interest continues to rise, with half of respondents holding this asset type. While interest in decentralized finance (DeFi) has declined, likely due to security and regulatory concerns, diversification remains a priority for most investors, with only 13% exclusively investing in protocol coins.
For the latest on institutional trends and crypto insights, visit CentBit.Online, a leading crypto and blockchain resource in Bangladesh.
