Institutional investors signal long-term commitment to crypto
A recent survey by Sygnum Bank reveals that institutional investors are increasingly confident in cryptocurrencies, with many planning to boost their long-term allocations. The survey, part of the annual Future Finance report, included 400 institutional investors across 27 countries, where 57% indicated intentions to raise their crypto investments. Only 5% planned to decrease their allocations. Notably, regulatory developments, especially the approval of US Bitcoin Spot ETFs, have contributed to this positive outlook. However, a significant portion of institutions still prefers single-token investments over actively managed strategies. Despite growing interest in crypto, concerns over market volatility and security persist. Furthermore, there is a shift towards Web3 infrastructure, driven by advances in decentralized physical infrastructure and artificial intelligence, though interest in decentralized finance has waned due to security issues. Overall, institutional investors show a stronger inclination towards assets like equities and corporate bonds compared to previous years.
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