A rising number of high-net-worth investors are showing renewed confidence in the long-term potential of cryptocurrency, according to a recent survey by Swiss digital bank Sygnum.
The survey, which involved over 400 investors across 27 countries, revealed that this renewed interest is fueled by expectations of high returns and the perceived momentum of a “megatrend” as crypto adoption continues to grow.
The report also revealed that diversification remains a major priority for institutional investors, as they view crypto investments as a hedge against macroeconomic risks, including recession fears. The interest is concentrated primarily on Layer 1 protocols and Web3 infrastructure, with Bitcoin and Ethereum leading the list.
Despite the optimism, the short-term outlook for crypto remains uncertain. Over half of the investors surveyed by Sygnum are adopting a neutral stance entering Q4 2024, citing asset volatility as the biggest challenge in the crypto space, followed by security, custody, and the absence of clear regulatory frameworks. Many are holding back, observing market conditions, while some investors remain wary of the potential impacts of global geopolitical tensions.
Interestingly, Sygnum acknowledged that crypto exchange-traded products also play a significant role in this rising investment in the crypto sector. It stated that surveyed investors noted that they prefer direct ownership of crypto assets rather than indirect exposure.
Notably, after recording substantial growth in the first half of 2024, which it attributed to the approval of Bitcoin and Ethereum ETFs, Sygnum announced in July its plans to expand operations within the European Union and Asia, starting in early 2025. The Swiss digital bank noted it is already establishing its presence in Abu Dhabi, Hong Kong, and Singapore.
Earlier this year, Sygnum partnered with Chainlink and Fidelity International to bring Net Asset Value (NAV) data on-chain. This initiative is aimed at enhancing transparency and providing real-time access to NAV data for tokenized assets, a notable shift from the traditional end-of-day update model, positioning Sygnum as a leader in merging digital innovation with traditional asset management practices.
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