According to Sygnum's 2024 survey, 57% of institutional investors plan to increase their cryptocurrency allocations as the market continues its bull run. A solid 65% of respondents feel optimistic about the long-term prospects of Bitcoin, especially as it hits new highs. However, 69% still see regulatory clarity as a positive development, while volatility in assets remains a key concern.
The survey, released on Thursday, reveals that institutions are eager to invest more in digital assets. This confidence stems from a growing willingness to take risks and a belief in the future of this asset class.
Over 400 institutional and professional investors participated in the survey. These individuals have an average of over 10 years of experience and come from 27 different countries.
Lucas Schweiger, Sygnum’s Digital Asset Research Manager, noted, “This report highlights progress and calculated risks. It shows how diverse strategies can help seize opportunities and reflects a strong belief in the market’s potential to reshape traditional finance.”
Among the participants, 65% are bullish in the long run. Additionally, 63% are considering increasing their digital asset allocations in the next three to six months. Interestingly, 56% expect to shift their outlook to a more positive stance within a year. Some have already turned optimistic, especially as Bitcoin (BTC) recently hit all-time highs.
Bitcoin has surged over 20% in just a week, reaching new highs above $93,000. This rise is fueled by hopes that President-elect Donald Trump will bring regulatory clarity to the digital asset market. Year-to-date, Bitcoin prices are up over 110%, largely due to the introduction of U.S.-listed spot ETFs that have attracted billions in investments. More than 70% of survey respondents say these ETFs have boosted their confidence in digital assets. Nearly 30% believe that digital assets outperform traditional investments.
More than half of the respondents reported holding over 10% of their funds in crypto. Almost 46% are considering increasing their allocations in the next six months. Meanwhile, 36% prefer to maintain their current positions, waiting for the right market conditions. The majority, 44%, favor single token investments, which means buying and holding one cryptocurrency. This is followed closely by 40% who prefer actively managed exposure.
Layer-1 blockchains are the most appealing area of interest, followed by Web3 infrastructure and DeFi. The tokenization of equity, corporate bonds, and mutual funds is now more popular than real estate, which was the top choice in 2023.
In the past, strict fiduciary responsibilities, investment mandates, and limited access to regulated crypto custodians posed challenges for investors. However, with 69% of respondents seeing improved regulatory clarity, asset volatility has become the main concern, along with security and custody issues.
For 81% of respondents, having access to better information would encourage them to consider increasing their allocations. This shift shows that investors are now focusing more on market-specific risks, strategic planning, and thorough research into technology rather than just regulatory concerns.