TL;DR
- 57% of institutional investors plan to increase their cryptocurrency allocations amid the ongoing bull run, driven by confidence in digital assets’ long-term potential.
- The survey, conducted by Sygnum, gathered responses from over 400 institutional and professional investors across 27 countries, highlighting a significant shift in market sentiment.
- Key factors include improved regulatory clarity and a bullish outlook, with 65% of respondents expressing long-term optimism and 63% considering increasing their digital asset allocations within the next three to six months.
A recent survey conducted by Sygnum, a global digital asset banking group, reveals that 57% of institutional investors are planning to increase their cryptocurrency allocations amid the ongoing bull run. This surge in interest is driven by a growing confidence in the long-term potential of digital assets and a willingness to take on higher risks.
📣 News: High-Risk Appetite and Long-Term Confidence Drives 57% of Institutional Investors to Raise Crypto Allocations: Sygnum Future Finance Survey
▪️ 57% of institutional and professional investors plan to increase long-term crypto allocations, demonstrating their high-risk… pic.twitter.com/fFHsz2cpyq
— Sygnum Bank (@sygnumofficial) November 14, 2024
Survey Insights
The survey, which gathered responses from over 400 institutional and professional investors across 27 countries, highlights a significant shift in market sentiment.
A notable 65% of respondents expressed a bullish outlook for the long term, with 63% considering increasing their digital asset allocations within the next three to six months. This optimism is further fueled by Bitcoin’s recent all-time highs, with prices soaring above $93,000.
Regulatory Clarity and Market Sentiment
One key factor contributing to this positive sentiment is the perceived increase in regulatory clarity. Approximately 69% of respondents believe that the regulatory environment for digital assets has improved, reducing one of the major barriers to institutional investment. However, asset volatility remains a primary concern, along with security and custody issues.
Preferred Investment Strategies
The survey also illuminates institutional investors’ preferred investment strategies. Over half of the respondents have over 10% of their portfolios allocated to digital assets.
Single token investments, where investors purchase and hold a single cryptocurrency, remain the most popular strategy, followed by actively managed exposure. Layer-1 blockchains, Web3 infrastructure, and decentralized finance (DeFi) are the top areas of interest.
Future Outlook for Institutional Investors
Looking ahead, the survey indicates that institutional investors are increasingly viewing digital assets as a superior investment compared to traditional assets. Nearly 30% of respondents believe that digital assets offer better returns and diversification benefits.
As the market continues to evolve, the focus is shifting from regulatory concerns to market-specific risks and strategic planning. The Sygnum survey highlights a growing confidence among institutional investors in the potential of digital assets. With a significant portion of respondents planning to boost their crypto exposure, the future looks promising for the crypto market.
