In January, during the peak of Bitcoin’s all-time high of $109,000, a survey was conducted by Coinbase and EY-Parthenon, involving 352 institutional decision-makers. The results revealed that institutional investors are optimistic about the future of digital assets, with 83% planning to expand their crypto exposure in 2025.
According to the research, 59% of institutional investors are considering allocating over 5% of their assets under management to digital assets or related products. Additionally, 75% of respondents expressed their intention to invest in some form of tokenization by 2026, showcasing a growing interest in the digital asset space.
The survey also highlighted the increasing interest in stablecoins, with 84% of institutions already using or planning to use stablecoins in the current year. Furthermore, 75% of investors indicated their plans to engage with decentralized finance (DeFi) by 2026, with the number of investors expected to rise from 24% to 75% over the next two years.
Despite the positive outlook for DeFi, the survey identified several barriers to adoption, including regulatory concerns, compliance issues, and a lack of internal knowledge within institutions. However, the researchers remain optimistic that regulatory clarity around custody, tax treatment, and the use of stablecoins could attract new market participants and increase activity in the digital asset space.
In terms of use cases within DeFi, derivatives, staking, and lending were identified as the top three areas of interest among firms currently engaged or planning to engage with the sector.
Looking ahead, institutional investors view regulation as both the biggest opportunity and the biggest risk for the crypto market in 2025. The survey suggests that clearer regulations could lead to the entry of new market participants and drive increased activity in the digital asset space.
Since the survey was conducted, crypto prices have experienced a decline, with Bitcoin currently trading around $83,000. Despite market fluctuations, institutional investors remain bullish on crypto, with ongoing plans to expand their exposure to digital assets in the coming years.