Sygnum Survey Reveals 57% of Institutional Investors Plan to Boost Crypto Holdings Amid Bitcoin Surge

In Sygnum's 2024 survey, 57% of institutional investors plan to increase their cryptocurrency investments. This comes as Bitcoin hits new highs. A solid 65% of respondents feel optimistic about the long-term prospects of digital assets. However, 69% still see asset volatility as a significant concern.

The annual survey gathered insights from over 400 institutional and professional investors. These participants have an average of more than 10 years of experience and come from 27 different countries. It’s clear that institutions are ready to invest more in digital assets.

Lucas Schweiger, Sygnum's Digital Asset Research Manager, stated, “This report shows progress and calculated risks. Institutions are using diverse strategies to seize opportunities and believe in the market’s potential to reshape finance.”

Interestingly, 65% of respondents are bullish in the long run. About 63% are considering increasing their digital asset allocations in the next three to six months. Additionally, 56% expect to shift their outlook to bullish within a year. Some are already changing their views as Bitcoin (BTC) reaches all-time highs.

Bitcoin has surged over 20% in just a week, now exceeding $93,000. This rise follows speculation that President-elect Donald Trump will provide clearer regulations for the digital asset sector. Year-to-date, Bitcoin prices are up over 110%, largely due to the recent launch of U.S.-listed spot ETFs, which have attracted billions in investments.

More than 70% of survey participants reported that these ETFs have boosted their confidence in digital assets. Nearly 30% believe that digital assets are better than traditional investments.

Over half of the respondents have more than 10% of their portfolios in crypto. Nearly 46% are looking to increase their allocations in the next six months. Meanwhile, 36% plan to keep their current investments, waiting for the right market conditions.

For 44% of respondents, single token investments are the preferred strategy. This means they buy and hold one cryptocurrency instead of diversifying. Following closely, 40% favor actively managed exposure. The highest interest lies in Layer-1 blockchains, followed by Web3 infrastructure and DeFi. Tokenization of equity, corporate bonds, and mutual funds is now more popular than real estate, which was the top choice in 2023.

Traditionally, strict fiduciary duties and limited access to regulated crypto custodians have posed barriers for investors. However, 69% of respondents now see improved regulatory clarity. Still, asset volatility remains the primary concern, followed by issues of security and custody.

For 81% of respondents, better access to information would encourage them to increase their allocations. This shift shows a growing focus on market risks, strategic planning, and thorough research into technology. It’s no longer just about regulatory concerns.