Despite a significant downturn in the cryptocurrency market since October last year, institutional investor confidence remains unshaken. A newly released survey indicates that a majority of institutions plan to increase their allocation to digital assets within the next year.
According to a joint survey conducted in January by Coinbase and EY-Parthenon among 351 institutional investors, a striking 73% of respondents stated their intention to increase their digital asset allocation proportion by 2026. Concurrently, 74% of respondents expressed optimism about the rise in cryptocurrency prices over the next 12 months.
However, the market's sharp volatility is prompting institutional investors to adjust their strategies in the cryptocurrency space. Nearly half (49%) of the respondents pointed out that recent market turbulence has led them to focus more on risk management, liquidity, and position control, rather than reducing overall exposure.
Investing in cryptocurrency exchange-traded products (ETPs) and digital asset companies remains one of the most common avenues for institutional investors to gain market exposure. Source: Coinbase-EY
Stablecoins and Tokenization Trends Emerge
Another significant finding from this survey is the growing institutional interest in emerging blockchain use cases such as stablecoins and the tokenization of real-world assets (RWAs).
The survey results show that 85% of respondents are currently using or planning to use stablecoins for payments and treasury operations, with settlement and internal cash management identified as primary application scenarios.
The passage of the "GENIUS Act" is seen as a key catalyst for the broader adoption of stablecoins. Source: Coinbase-EY