A recent survey conducted by Binance Research has provided new insights into the evolving attitudes of institutional investors toward cryptocurrencies. However, The survey polled over 200 global institutional investors, revealing a growing optimism in the crypto sector over the next 12 months and into the next decade.
Growing confidence in the crypto sector
According to the survey, 63.5% of respondents indicated a positive outlook on the crypto sector over the next year, with this figure rising to 88% when the timeframe was extended to the next decade. This data signifies increasing confidence among institutional investors in the potential of cryptocurrencies, in stark contrast to the skepticism seen in the past.
The survey participants, a varied group of institutional investors with diverse experiences and assets under management (AUM), also provided details about their current crypto holdings. Over the past year, 47.1% of respondents maintained their crypto allocation, while 35.6% reported increased holdings. Looking to the future, half of the respondents expect to increase their crypto investments, while only 4.3% anticipate a decrease in the next 12 months.
Investor interest focuses on infrastructure and regulatory clarity
The Binance Research survey also highlighted areas of focus among institutional investors. Infrastructure, as well as Layer-1 (L1) and Layer-2 (L2) sectors, were the most significant, indicating a shift towards the foundational aspects of cryptocurrency technologies. Specifically, 53.9% of participants found infrastructure important to their investments, followed closely by L1 and L2 sectors at 48.1% and 43.8%, respectively. In recent months, decentralized applications (dApps) were reported as the most widely used technology.
The survey respondents also pointed to real-world use cases and regulatory clarity as critical drivers for broader crypto adoption. Approximately 27% of those surveyed expressed a need for more real-world applications of cryptocurrencies, while 25.3% called for greater regulatory clarity. These factors, combined with increased participation from banks and other financial institutions, are perceived as key to the continued growth and adoption of cryptocurrencies.
These findings from Binance Research’s survey offer a valuable snapshot into the evolving attitudes and investment behaviors of institutional investors in the crypto sector. The increased optimism, focus on infrastructure and regulatory clarity, and expectation of growing allocations in the coming year all point to a significant shift in the financial landscape, with cryptocurrencies becoming an increasingly mainstream investment option.
