Institutional Investors Embrace Crypto, Cite Regulatory Clarity as Key Growth Driver
A growing number of institutional investors are increasing their exposure to digital assets, with regulatory clarity emerging as the primary catalyst for industry expansion, according to a recent survey conducted by Coinbase (COIN) and consulting firm EY-Parthenon (EYP).
The survey, conducted between Jan. 13 and Jan. 24, 2025, gathered insights from 352 institutional investors. Findings reveal that 86% of respondents either hold digital assets or plan to allocate funds to crypto this year. Additionally, 84% reported increasing their allocations to cryptocurrencies and related products in 2024.
As institutional adoption deepens, 59% of investors said they intend to allocate over 5% of their total assets under management (AUM) to crypto in 2025. The improving regulatory landscape under President Donald Trump’s administration is seen as a major tailwind for digital assets, with the President pledging to establish the U.S. as the global hub for cryptocurrency innovation.
The survey also highlights growing interest in altcoins among institutional investors. 73% of respondents reported holding assets beyond bitcoin (BTC) and ether (ETH), with hedge funds leading the way at 80%. Stablecoins have also gained traction, with nearly 50% of respondents utilizing them for yield generation, transactions, and foreign exchange purposes.
When it comes to investment strategies, 60% of institutional investors prefer exposure through regulated investment vehicles like exchange-traded products (ETPs).
The survey primarily focused on decision-makers in the U.S. and Europe, with additional participation from investors across global markets.
