A recent survey conducted by Coinbase and EY-Parthenon highlights a growing optimism among institutional investors regarding cryptocurrencies in 2025.
The research, which gathered insights from decision-makers at 352 firms, indicates that 83% of these investors plan to increase their allocations to crypto this year, reflecting a significant shift in the perception of digital assets within institutional portfolios.
After a landmark year for crypto in 2024, the momentum appears to be sustaining as investors express confidence in the sector’s future. Many believe that cryptocurrencies present attractive investment returns, with a notable 59% of respondents indicating intentions to allocate more than 5% of their assets under management (AUM) to crypto. This trend marks a clear transition of digital assets from a niche investment to a more mainstream asset class.
Expanding Use Cases for Stablecoins
The survey also reveals a surge in interest surrounding stablecoins, with 84% of participants either currently using them or expressing interest in doing so. Investors are recognizing the versatility of stablecoins beyond merely facilitating crypto transactions. Key use cases include generating yield (73%), foreign exchange (69%), internal cash management (68%), and external payments (63%), signaling a broadening application of these digital assets.
Engagement with Altcoins on the Rise
The findings indicate that institutional investors are increasingly engaging with altcoins. Nearly 73% of respondents reported holding cryptocurrencies other than Bitcoin and Ethereum, with Ripple (XRP) and Solana (SOL) emerging as the most popular options. Additionally, 68% of investors expressed interest in purchasing single-asset Exchange-Traded Products (ETPs) for these altcoins, highlighting a desire for more varied investment opportunities.
DeFi’s Growth Potential
Decentralized finance (DeFi) is also poised for substantial growth, with only 24% of surveyed investors currently involved in DeFi. However, that number is projected to triple to 75% over the next two years. Investors are drawn to DeFi for various reasons, including derivatives, staking, lending, and access to altcoins. This shift suggests a significant appetite for innovation and new financial products within the digital asset space.
Navigating Challenges Ahead
While optimism abounds, concerns remain. The evolving regulatory landscape is the top worry for 52% of respondents, followed by volatility (47%) and secure custody (33%). A clearer regulatory framework is anticipated to act as a catalyst for growth, with 68% of investors citing it as essential for the expansion of the digital asset industry.
Shogun Lin
