PANews reported on March 19 that according to Cryptoslate, according to a new survey conducted by Coinbase and EY-Parthenon, institutional investors are increasingly bullish on cryptocurrencies, with 83% of institutions planning to expand their allocations this year. The study, which surveyed 352 institutional decision makers in January, found that investors' confidence in digital assets continues to grow as regulatory transparency improves and a wider range of application scenarios emerge. The majority (59%) of respondents plan to allocate more than 5% of their assets under management (AUM) to cryptocurrencies in 2025, indicating that cryptocurrencies are transforming from a niche investment to a key component of an investment portfolio.
Additionally, stablecoins continue to gain favor with institutions, with 84% of investors surveyed currently using or considering them for a variety of purposes beyond trading. Yield generation (73%), foreign exchange (69%), and internal cash management (68%) were cited as the main drivers of adoption. While still in the early stages of institutional participation, DeFi is expected to see significant growth. Currently, only 24% of investors participate in DeFi, but this number is expected to triple to 75% by 2027. While Bitcoin and Ethereum continue to dominate institutional portfolios, 73% of respondents reported holding at least one altcoin. Additionally, 68% of investors expressed interest in exchange-traded products (ETPs) that provide exposure to a single asset.
Despite the optimism, regulatory uncertainty remains a significant challenge. More than half (52%) of investors surveyed ranked regulation as their top concern, followed by volatility (47%) and custodial security (33%). However, 68% believe that clearer regulation will drive the next wave of institutional crypto adoption. The report highlights the continued shift of institutional investors toward digital assets, with increased allocations, diversified application scenarios, and expanded product participation.
