57% of investors eye more Crypto

Institutional interest in cryptocurrency has reached a new high. According to a recent survey by Signum Bank, 57% of institutional investors and financial professionals plan to increase their exposure to crypto assets.

This enthusiasm reflects a major shift in how the major players view the long-term value of digital assets.

Changing emotions and increased classifications, symptom findings

The survey represents insights from banks, hedge funds, multifamily offices, asset managers and other investment-focused entities. There are more than 400 respondents in 27 countries with an average of more than ten years of experience.

Notably, one-third (33.33%) of these participants are Sygnum customers. The findings show an increase in appetite for high-risk investments in crypto and confidence in the digital assets space.

Among the mainstream, nearly 65% ​​of respondents have a long-term view of crypto. Meanwhile, 63% plan to allocate more money in the next three to six months. Additionally, 56% are expected to take a bearish position within the year, fueled by Bitcoin's recent all-time highs (ATH).

More than half of the survey respondents held more than 10% of their portfolios in crypto. Meanwhile, 46% plan to increase their placement in six months, and 36% are waiting for good entry points. This commitment reflects an enduring belief that digital assets can deliver superior returns to traditional investments—shared by nearly 30% of survey respondents.

In terms of investment strategy, single-token holdings are the most popular approach. According to the survey, 44% of participants choose to invest in individual tokens. Actively managed exposure, where portfolios are adjusted based on market performance, is closely followed with a 40% preference.

This continued commitment to increasing crypto exposure, even amid market volatility, reflects the growing awareness of digital assets as a “megatrend” investment.

“This report tells the story of growth and calculated risk, the use of different strategies to take advantage of opportunities and, above all, confidence in the market's long-term potential to shape traditional financial markets,” said Lucas Schweiger. Sygnum Digital Asset Research Manager.

Strategic approaches and investment trends

Layer-1(L1) blockchains are used as basic platforms for building decentralized applications (dApps) and have the highest level of investment demand. Web3 infrastructure and decentralized finance (DeFi) ventures will follow closely.

Interestingly, tokenized assets, including corporate bonds and mutual funds, have gained more traction than real estate investments, which has led to 2023. This shift highlights how crypto adoption affects traditional sectors, offering new opportunities for asset tokenization.

Previously, regulatory uncertainty was seen as the biggest obstacle to institutional crypto investments. However, the survey found that 69% of respondents now believe that regulatory transparency is improving, shifting concerns to asset volatility and security. This indicates a mature market where investors prioritize effective risk management over regulatory hurdles.

The need for a deeper understanding of market-specific risks is evident. Up to 81% of participants said that having better information would encourage them to improve their placement. This shift indicates that market intelligence, strategic planning and technology research are critical factors for institutions entering the crypto playing field.

Institutional enthusiasm for crypto is part of a broader trend across the US. Digital assets are not just speculative plays for individual investors. BeInCrypto reports that crypto is emerging as a long-term investment opportunity rather than gambling.

Additionally, the introduction of Bitcoin ETFs (exchange-traded funds) has increased credibility for crypto as an asset class. Political influences also play a significant role. President-elect Donald Trump's recent victory could bolster crypto's status in the US, with some analysts believing his pro-business stance will further boost institutional involvement in the sector.

This could bring more visibility to the industry and more favorable regulations that would further encourage long-term investments in digital assets. However, some market observers are skeptical of the implications of growing institutional adoption of the crypto, with the likes of BlackRock and Microstrategy growing their Bitcoin portfolios.

“Doesn't this defeat the whole purpose of “decentralization”? Blackrock will be the biggest holler, it doesn't get more centralized than that,” said one X user.

Sygnum's survey echoes recent findings, with BeInCrypto reporting that more than 80% of crypto investors are optimistic about the future. Many believe the current bull market is ready to continue.