Cryptocurrency institutional investors are changing their approach to digital assets, with diversification replacing speculation as the main investment theme, according to Sygnum’s Global Institutional Investor Report Future Finance 2025.
The Swiss Digital Asset Bank found that more than 60% of cryptocurrency institutional investors plan to increase their allocation to crypto assets, while only 4% plan to reduce their exposure. However, bullish sentiment remains dependent on market catalysts expected in the final quarter of the year. The report is based on a late third quarter survey of more than 1,000 institutional and professional investors across 43 countries and concludes that for the first time, portfolio diversification (57%) has surpassed short-term return potential (53%) as the primary reason for investing in digital assets.
“We interpret this finding as evidence that crypto assets are growing into a strategic, long-term asset class with unique value drivers and risk factors,” said Fabian Dori, chief investment officer at Signum. decryption.
Signum’s findings come at a time of market uncertainty in the fourth quarter, with investors weighing expected ETF approvals, the impact of pending U.S. market structure legislation, and global financial uncertainty. Liquidation and catalyst delays in late October have dampened earlier optimism and many investors are now taking a wait-and-see attitude.
Lukas Schweiger, Head of Cryptoasset Ecosystem Research at Sygnum and author of the report, noted that the 2025 story will be defined by “measured risks, pending regulatory decisions, and strong demand drivers against a backdrop of fiscal and geopolitical pressures.”
The maturing virtual currency market
This report paints a picture of a mature market where passive exposures are replaced by discretionary obligations and actively managed strategies. Investors are diversified across tokenized money market funds, stable coinand multi-asset exchange-traded products (ETPs) indicate a preference for balanced and flexible exposure. More than 70% of respondents said they would increase their allocation if ETF staking was approved, a sign of the sector’s growing sophistication.
The report suggests that acceptance of cryptocurrencies in traditional finance is growing. More than 80% of respondents answered Bitcoin is a viable Treasury reserve asset, and 70% believe holding cash over Bitcoin has a higher opportunity cost over the next five years.
However, regulatory uncertainty and security concerns remain major obstacles. Historically volatility has been cited as a key deterrent, but this year respondents rated unclear laws and the risk of detention higher. Analysts at Signum suggest that regions with established regulatory clarity, such as Switzerland and parts of Europe following MiCA, are already benefiting from increased institutional trust, while APAC markets are lagging behind due to increased regulation.
“Regulatory concerns are more pronounced among investors in the Asia-Pacific region, and we are seeing both progress and pushback against regulation, with regulators tightening regulations that may limit exposure to this asset class,” Dori said. He added that he expects the situation to “improve dramatically over the year” following the passage of the GENIUS Act in the US, with record inflows and “an impressive list of TradFi institutions entering the space.”
91% of high net worth individuals (HNWIs) said cryptocurrencies play an important role in protecting long-term wealth from fiat currency depreciation. Interest in virtual currency ETFs Bitcoin and Ethereum has also skyrocketed, with 70% of respondents willing to allocate more if staking is allowed.
The report also noted that as fiat currencies come under increased scrutiny and trust in traditional institutions erodes, wealthy individuals are increasingly turning to Bitcoin’s scarcity and decentralization as a hedge against macroeconomic instability. As financial pressures in the West increase, digital assets are becoming less speculative and more conservative.
“This trend has a lot to do with the dollar, but it also has to do with the weakness of the euro,” Dori said. Volatility is less of an issue for wealthy individuals because they are “primarily focused on long-term investment horizons.” “This is especially true given that Bitcoin’s volatility has been structurally declining for many years,” he said, adding that Bitcoin “continues to outperform as the purchasing power of the dollar declines.”
