As CNF reported, institutional investors are increasingly welcome cryptocurrencies, whereby a considerable majority are planning to expand their portfolios and explore the decentralized finance system.
A current survey by Coinbase and Ey-Partenon shows that 83 % of institutional investors intend to increase their crypto allocations in 2025, driven by striving for attractive, risk-adapted returns:
“An overwhelming 83% majority of interviewed investors plans to increase their allocations in cryptocurrencies in 2025, since they believe that cryptocurrencies offer the best way to achieve attractive, risk -intended returns in the next three years. Management) to invest in cryptocurrencies because the asset class further consolidates its role in institutional portfolios. ”
The survey underlines the growing trend among institutions to diversify their crypto stocks beyond the traditional crypto letting Bitcoin (BTC) and Ethereum (ETH). Almost three quarters of the companies surveyed are currently holding alternative cryptocurrencies, with Ripples XRP and Solanas Sol as the most popular choice.
According to Reuters, the admission of Altcoin ETFs will further boost institutional investments in cryptocurrencies by the US regulatory authorities. Asset managers are waiting for the green light from the US stock exchange supervision SEC for more than a dozen requested altcoin ETFs.
Stable coins are on the advance among institutional investors: 84% of those surveyed keep them or consider buying them.
Institutions use stable coins for various purposes that go beyond the facilitating of crypto transactions, including the generation of returns (73%), foreign exchange transactions (69%), internal cash management (68%) and external payments (63%).
While only 24% of institutional investors are currently using Defi platforms, this number will be expected to increase to almost 75% in the next two years. Institutions are particularly interested in defi applications such as derivatives, staking, lending, access to old coins, cross-border bills and Yield Farming.
The developing regulation plays a crucial role in the design of institutional participation in the crypto area. The SEC has approved several Bitcoin-based raw material-trust shares and trust and thus signaled a more accommodating attitude towards cryptocurrency investments.
It is important that this growing institutional interest in cryptocurrencies, of course, also extends to Bitcoin, the leading digital asset of the market.
Bitcoin (BTC) is traded at $ 83,445 in the bliss of this article, which reflects an increase of 0.06 % in the last 24 hours and an increase of 1.01 % in the last week – a sign for a weak but steady upward trend in the middle of the latest market fluctuations.
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