Majority of Institutions to Increase Crypto Investments Despite Market Slump — Sygnum Report

The Future Finance 2025 global institutional investor research from says that most institutional and professional investors are still hopeful about the long-term future of digital assets, even though the crypto market as a whole is still very volatile.

The poll, which surveyed more than 1,000 people from 43 countries, revealed that 61% of institutional investors plan to increase their cryptocurrency holdings in the next few months, and 55% said they were bullish in the short term.​

Even if the market dropped by $20 billion in October, 73% of respondents still invest in crypto because they think it will pay off in the future. This desire is fuelled by the hope that regulations will get better and that many crypto platform-traded funds (ETFs) will be approved in significant places.​

Why Institutions Are Still Bullish

The 2025 shows a change in the reasons for investing: for the first time, portfolio diversification (57%) has become more significant than short-term profit potential (53%) as the main reason for getting into digital assets.

Institutions view crypto as an increasingly essential way to get risk-adjusted returns, pointing to new prospects in decentralised finance (DeFi) products that pay interest and tokenised .​

Over 80% of the investors who answered the study said they were interested in other than and ETH. 70% said they would invest more if products with staking incentives were available. As rules get better, more people are expected to use stablecoins and tokenized assets, especially with better ways to store and access them.​

Trends: ETFs and Actively Managed Strategies

The poll showed that more varied and actively handled ones are replacing single-token bets. About 76% of institutions prefer direct token investments, while 55% strongly prefer platform-traded products, such as ETFs.  

Investors are also viewking discretionary mandates and multi-strategy models that can assist them navigate market changes resulting from events and policies.​

These results suggest that discipline and risk awareness are now integral components of institutional involvement, even though people still firmly believe that digital assets will be widely adopted and flourish in the long run.​

What to Expect: Regulatory and Market Drivers

Institutional investors have identified several key factors that may further accelerate allocations. These include the quick approval of altcoin (more than a dozen of which are awaiting clearance from U.S. regulators) and clear rules for digital asset products. 

The timing of significant policy decisions remains uncertain. Still, business leaders believe that a favorable regulatory environment will facilitate the introduction of new products and encourage more institutional capital to flow.​

Sygnum’s research team predicts that 2025 will be a year of “measured risk and powerful demand catalysts,” as institutions adopt amid rapid change. In conclusion, institutions are preparing to be part of the digital economy for the long term, despite some short-term turbulence.