Last week, digital asset bank Sygnum released its first institutional cryptocurrency market survey report, focusing on the adoption and trends of cryptocurrencies among institutional investors, as well as the future demand and challenges for newcomers in the market. With over 150 respondents averaging over 10 years of institutional investment experience, including Sygnum’s institutional client base and equity investors, banks, hedge funds, multi-family offices, single-family offices, foundations, and asset management companies.
The survey, conducted shortly before the strong rebound in the crypto market in November 2023, showed that 87% of respondents invested in “blockchain protocol tokens like Bitcoin (BTC), Ethereum (ETH), and SOL”, and 50% invested in tokens related to decentralized applications (DApps). Additionally, 57% of respondents plan to increase their cryptocurrency asset allocation in the future.
Regarding the reasons for investing in cryptocurrencies, 66% of respondents said they did so to “gain exposure to the major trends in cryptocurrencies”, while 46% viewed portfolio diversification as their investment driver. Sygnum noted that among respondents planning to maintain or increase their cryptocurrency asset allocation, 62% expect higher returns in the future.
The report also pointed out that 37% of investors “believe that cryptocurrencies are a better investment than traditional assets, demonstrating their attractiveness as a hedge tool in traditional markets”, direct token investment remains the preferred choice for all respondents, “indicating a clear preference for investing through direct token ownership and generating income through staking”, Sygnum believes, “with the continuous evolution and diversification of financial products, this preference may change”.
Lucas Schweiger, Digital Asset Research Manager at Sygnum, who wrote the report, commented:
Fabian Dori, Vice CEO and Chief Asset Management Officer of Sygnum Group, said:
According to previous reports by Zombit, cryptocurrency exchange Coinbase also conducted a survey on cryptocurrency investments among institutional investors in the fourth quarter of this year. The report indicated that among institutions already invested in cryptocurrencies, 64% plan to increase their allocation to digital assets in the next three years, while approximately 45% of institutions not yet invested in cryptocurrencies indicated that they may enter the field in the next three years.