Institutional investors remain confident in digital assets despite a pointy market correction in October, with most planning to extend their exposure in the approaching months, in accordance with a brand new study.
More than 61% of institutions plan to extend their cryptocurrency investments, while 55% have a bullish short-term outlook, Swiss crypto banking group Sygnum said in a report published on Tuesday. 1,000 institutional investors worldwide took part within the survey.
About 73% of institutions surveyed are investing in cryptocurrencies based on expectations of upper future returns, regardless that the industry remains to be recovering from the market's record $20 billion crash in early October.
However, investor sentiment continues to face uncertainty resulting from delays in key market catalysts, including the market structure bill and the approval of more altcoin exchange-traded funds (ETFs).
Institutional Crypto Allocation Plans. Source: Sygnum
While this uncertainty could proceed into 2026, Lucas Schweiger, Sygnum's lead crypto asset ecosystem researcher, predicts a maturing digital asset market where institutions are looking for diversified exposure with long-term growth expectations.
“The story of 2025 is considered one of measured risks, pending regulatory decisions and robust demand catalysts against a backdrop of fiscal and geopolitical constraints,” he said, adding:
“But investors at the moment are higher informed. Discipline has dampened exuberance, but not conviction, available in the market's long-term growth trajectory.”
Despite the October correction, “strong demand catalysts” and institutional participation remained at an all-time high, with growing ETF applications signaling stronger institutional demand, Schweiger added.
At least 16 crypto ETF applications are currently awaiting approval, which has been delayed by the continuing government shutdown within the US, now in its fortieth day.
Cryptocurrency ETFs could possibly be the subsequent institutional catalyst
Cryptocurrency ETFs could possibly be the subsequent fundamental catalyst for institutional demand for cryptocurrencies.
Over 80% of institutions surveyed expressed interest in crypto ETFs beyond Bitcoin (BTC) and Ether (ETH), while 70% said they’d start investing or increase their investments if these ETFs offered staking rewards.
Staking is the act of locking your tokens on a Proof-of-Stake (PoS) blockchain network for a predetermined time period to secure the network and earn passive income in return.
Meanwhile, investors at the moment are anticipating the tip of the federal government shutdown, which could bring “mass approvals” for altcoin ETFs by the U.S. Securities and Exchange Commission and trigger the “next wave of institutional inflows,” in accordance with Sygnum.
