Coinbase Survey: Nearly Six in Ten Institutional Investors Plan to Allocate Over 5% of Assets to Crypto
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Coinbase Survey: Nearly Six in Ten Institutional Investors Plan to Allocate Over 5% of Assets to Crypto
As regulatory clarity increases and broader use cases emerge, investor confidence in digital assets continues to grow.
Navigating Web3 tides with focused insightsSource: cryptoslate
Compiled by: Blockchain Knight
According to a new survey conducted by Coinbase and EY-Parthenon, institutional investors are becoming increasingly bullish on crypto assets, with 83% planning to increase their crypto allocations this year.
The study, which surveyed 352 institutional decision-makers in January, found that investor confidence in digital assets is growing due to increased regulatory clarity and broader use cases.
A majority (59%) of respondents plan to allocate more than 5% of their asset under management (AUM) to crypto assets in 2025—marking a shift of crypto from a fringe investment to a core component of portfolios.
This trend continues the strong performance of the crypto market in 2024, driven by rising adoption of stablecoins, DeFi, and tokenized assets.
Stablecoins and DeFi
Stablecoins remain popular among institutions, with 84% of surveyed investors currently using or considering stablecoins for various purposes beyond trading.
Yield generation (73%), foreign exchange (69%), and internal cash management (68%) are seen as the main drivers for stablecoin adoption.
Although institutional participation in DeFi remains in early stages, momentum is building rapidly. Currently, only 24% of investors are engaged in DeFi, but this figure is expected to triple to 75% by 2027.
Institutional investors show particular interest in DeFi derivatives, staking, and lending products—highlighting DeFi’s potential to disrupt traditional financial services.
While BTC and Ethereum continue to dominate institutional portfolios, 73% of respondents report holding at least one other crypto asset.
XRP and SOL are the most commonly held alternative crypto assets. Additionally, 68% of investors expressed interest in exchange-traded products (ETPs) offering exposure to single assets.
Regulatory Clarity as a Growth Catalyst
Despite optimism, regulatory uncertainty remains a significant challenge.
More than half (52%) of surveyed investors cited regulation as their top concern, followed by volatility (47%) and custody security (33%).
However, 68% believe that greater regulatory clarity will drive the next wave of institutional crypto adoption.
The report highlights an ongoing shift of institutional investors into digital assets, characterized by increasing allocations, diversified use cases, and expanding engagement with related products.
While regulatory developments and market volatility may pose hurdles, the overall trend indicates that crypto assets will continue gaining momentum within institutional portfolios.
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