Crypto Assets Catch Institutional Attention As 72% Show Willingness To Invest – Survey Reveals

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As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset landscape, I can confidently say that the tide is turning for mainstream institutional adoption of cryptocurrencies. The Sygnum Future Finance Survey results are an encouraging sign that traditional investors are increasingly recognizing the potential of this burgeoning sector.

Based on a recent study conducted by the Swiss digital bank Sygnum, it was discovered that about three-quarters (72%) of institutional investors such as family offices, external asset managers, mutual fund managers, and hedge funds are receptive to the idea of incorporating cryptocurrencies into their investment portfolios.

Institutional Investors Getting Comfortable With Crypto Assets

In Q3 2024, towards its conclusion, the Sygnum Future Finance Survey was administered. This survey garnered feedback from more than 400 institutional and professional investors hailing from 27 different countries. Importantly, about one-third of the respondents were existing Sygnum clients and investors.

As a researcher, I’ve uncovered an intriguing trend: the heightened propensity for risk among conventional institutional investors regarding digital assets. In fact, over half (approximately 53%) of these investors have chosen to allocate more than ten percent of their portfolios towards such assets.

Approximately two out of three survey participants showed a strong inclination towards taking on high risks when it comes to digital assets in 2024. This is an increase compared to the previous year, 2023, where fewer respondents displayed such a high or very high risk tolerance for cryptocurrencies.

Furthermore, about 91% of participants mentioned their investment in top-tier blockchain initiatives, such as Bitcoin (BTC) and Ethereum (ETH). This suggests that they tend to favor comparatively stable digital currencies over more volatile ones.

Approximately two-thirds (62%) of survey participants mentioned the appeal of crypto assets lies in their potential to capitalize on the expanding digital asset trend. Coming in second was a desire for diversification within investment portfolios (52%). Additionally, 45% saw crypto assets as a strategic hedge against geopolitical risks and potential currency devaluation, while approximately one-third (38%) were drawn to them for their potential yield generation.

It’s intriguing to note that in 2023, about 44% of respondents considered cryptocurrency as an alternative investment option. However, this number dropped to 31% in 2024. This decrease suggests a growing maturity perspective towards digital assets, primarily influenced by the thriving crypto exchange-traded funds (ETFs).

Majority Investors Want To Increase Digital Assets Exposure

Based on a recent survey, it’s shown that about 3 out of every 4 participants are considering expanding their investments in digital currencies over the next year. Many individuals who currently don’t own any crypto assets are planning to join the market soon, which could result in a significant increase of funds flowing into this sector by mid-2025.

It turns out that regulatory uncertainty about cryptocurrencies is no longer the top reason people aren’t investing in this new type of asset. Instead, 53% of respondents have indicated that the high volatility of these assets is a significant hurdle, and 50% are expressing doubts about trusting cryptocurrencies as an investment option.

76% of those surveyed showed a preference for Layer 1 blockchains such as Bitcoin and Ethereum within the crypto industry. On the other hand, 55% of participants indicated an interest in web3 infrastructure, primarily driven by advancements in AI and decentralized physical infrastructure networks (DePIN). This was second only to the Layer 2 ecosystem, which garnered the attention of 41% of investors.

Ultimately, it was found that about three out of four participants felt more assured about investing in cryptocurrencies after the United States Securities and Exchange Commission approved both Bitcoin (BTC) and Ethereum (ETH) ETFs.

As an analyst, I’ve observed some intriguing figures from SoSoValue regarding US-based spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs). The combined net assets held across these Bitcoin ETFs currently amount to a staggering $95.40 billion, while Ethereum ETFs collectively hold approximately $9.48 billion. Notably, BlackRock’s Bitcoin ETF has surpassed its gold ETF in terms of Assets Under Management (AUM), signaling a significant shift in investor preference towards digital assets.

Currently, one Bitcoin is being transacted for approximately $91,200, representing a 4% increase over the previous 24-hour period. At present, the combined value of all cryptocurrencies amounts to roughly $3.14 trillion, showing a 1.7% growth in the same timeframe.

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2024-11-15 17:12