Institutional investors signal long-term commitment to crypto

Growing confidence in Bitcoin and the broader cryptocurrency market has led most institutional investors to plan increased long-term allocations in crypto.

In its annual Future Finance survey, Swiss crypto bank Sygnum found a higher appetite for crypto assets among institutional investors. The survey report, released on Nov. 14 and shared with Cointelegraph, highlighted shifting interests and positive market sentiment toward cryptocurrencies.

Martin Burgherr, Sygnum Bank's chief clients officer, believes more explicit regulations globally aided the positive market sentiment among institutional investors. He added:

A generally positive outlook on crypto

The survey, which included responses from 400 institutional investors across 27 countries, found that 57% - or 228 respondents - plan to increase their crypto allocations, with 31% expecting to do so in the next quarter and 32% within six months.

Demonstrating a generally high-risk appetite among institutional investors, only 5% of the respondents plan to decrease their crypto allocations, while 2% have yet to decide.

However, 44% of institutions that do plan on increasing their crypto exposure will stick to single-token investments. In comparison, 40% opted for an actively managed exposure as their go-to investment strategy.

According to Sygnum, 36% of the institutions that plan on holding their current position may be awaiting further market confirmation or optimal market entry timing before deciding to increase their crypto allocations.