88% of Binance Institutional Investors Surveyed Express Long-Term Optimism About Crypto

Main Takeaways

• Binance Research and Binance VIP & Institutional ran a global survey of institutional and VIP users to understand their outlook on digital assets investing.

• 63.5% of respondents expressed optimism for crypto over the next 12 months, and the figure jumped to 88.0% when asked about their outlook for the next decade.

• Over the past year, 47.1% of investors had maintained their crypto allocation, and over a third (35.6%) increased their allocation. Only 17.3% decreased their crypto allocation.

Binance Research survey of Institutional Users shows promising trends for digital assets.

Institutional users recognize the long-term potential of crypto assets, according to a recent report by Binance Research which surveyed 208 respondents on their attitudes, preferences, and motivations toward cryptocurrency investments.

Positive and Long-Term Outlook On Crypto as an Alternative Asset Class

The Institutional Crypto Outlook Survey showed that a majority of institutional users hold a positive outlook for crypto assets both in the short term and the long term. 63.5% of the respondents surveyed expressed confidence in crypto over the next 12 months, while a significant 88% indicated confidence over the next decade. 

Institutional users also ranked the development of practical, real-world use cases of cryptocurrencies as the highest factor (26.9%) in bringing about mass adoption, contrasted against just 4.3% of respondents who viewed higher prices as the most important factor.

This indicates institutional users are looking beyond short-term speculation and market cycles and recognize crypto assets for their long-term potential.

Institutional Crypto Allocation Strategies Tend Towards Long-Term

Despite market events over the past year, a majority of investors (47.1%) maintained their crypto allocation, while 35.6% increased their exposure during the same period. Only a minority (17.3%) decreased their crypto allocation.

50% of respondents expect to increase their allocation over the next 12 months, and 45.7% would maintain their exposure. This leaves only 4.3% of investors expecting to reduce their exposure. 

Over half (53.9%) of investors found infrastructure to be the most important sector for them or their fund, closely followed by Layer 1 and Layer 2 technologies (48.1% and 43.8%, respectively), suggesting again institutional users tend to have a long-time horizon.

Investing Motivation and Choice of Platform

Institutional users continue to use centralized exchanges for trading (90.5%) and custody activities (58.2%), and they primarily considered liquidity (28.0%), security (26.0%), and reputation (22.5%) as the top selection criteria. When participating in decentralized finance (DeFi), spot decentralized exchanges were the most widely utilized type of dApp (27.9%). 

42.8% of investors considered the potential for substantial investment returns as the main reason for investing in cryptocurrencies, closely followed by 37.5% of investors who prioritized the opportunity to gain long-term exposure to emerging technology. Understanding that  90.5% of respondents still preferred CEXs also means the importance of developing more tools that can facilitate greater institutional adoption of DeFi.

“The results of the Institutional Crypto Outlook Survey highlight the positive long-term view held by many institutional users regarding the crypto industry. Despite the challenging macro environment, respondents demonstrate continued interest in and commitment to the industry through their portfolio allocation decisions and active interactions with decentralized applications. Overall, the survey responses reaffirm that institutional users are here to stay, which signifies an optimistic outlook for the crypto industry,” said Catherine Chen, Head of Binance VIP and Institutional.

The full report can be accessed here.

Disclaimer

The Institutional Crypto Outlook Survey is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities, cryptocurrencies, or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer, they may change as subsequent conditions vary. The information and opinions contained in the survey are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. The survey may contain ‘forward-looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in the survey is at the sole discretion of the reader. The survey is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies, or any investment strategy nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.