A growing number of institutional investors are ramping up their cryptocurrency holdings, with 83% planning to increase their allocations this year, according to a new report by Coinbase and EY-Parthenon.
The report, published on March 18 on Coinbase’s blog, surveyed decision-makers from 352 companies. The findings highlight a shift in sentiment, as more institutions see digital assets as a core investment rather than a speculative niche. Over half of respondents (59%) intend to allocate at least 5% of their assets under management (AUM) to crypto in 2025.
Stablecoins are also gaining momentum, with 84% of institutional investors either using them or considering adoption. While traditionally used for facilitating crypto transactions, stablecoins are now being explored for cash management, payments, yield generation, and foreign exchange.
Institutional engagement with DeFi is set to surge as well. Currently, only 24% of surveyed investors participate in DeFi, but that figure is projected to hit 75% within two years. Many view DeFi as an entry point into lending, derivatives, and staking opportunities.
Beyond Bitcoin and Ethereum, institutional interest in alternative cryptocurrencies remains strong. The report reveals that 73% of respondents hold assets outside these two major cryptocurrencies, with XRP and Solana ranking as the most widely held altcoins. Investors are also eyeing single-asset exchange-traded products (ETPs) for a broader range of digital assets.
Despite the optimism, regulatory uncertainty (52%), market volatility (47%), and secure custody (33%) remain key concerns for institutions. However, 68% of respondents believe that clearer regulations will drive further market expansion.
The crypto market has notably responded to growing institutional participation, with large investors playing a significant role in shaping price trends and liquidity. Bitcoin, in particular, has seen increased stability and higher trading volumes following major institutional moves.
On February 26, Singapore-based blockchain firm Matrixport noted that Bitcoin’s price movements were closely tracking BlackRock’s IBIT ETF, highlighting Wall Street’s growing impact on the crypto market. While Bitcoin’s dominance remained at 60%, its correlation with institutional investment vehicles reinforced the role of traditional finance in shaping market dynamics.
Meanwhile, Crypto.com is expanding its institutional presence. On January 21, the Singapore-based exchange launched a new trading platform in the United States, aimed at institutional investors. This initiative complements its existing retail-focused Crypto.com App, marking a strategic push into the U.S. institutional trading sector.
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