Institutional investors are increasingly bulling to cryptocurrency, with 83% say they plan to up crypto allocations in 2025, according to a March 18 report of Coinbase and Ey-Parthenon.
Already, nearly three-quarters of companies reviewed said they hold cryptocurrencies other than Bitcoin (Btc) and ether (Eth), and a “significant most” said they plan to boost crypto allocations to 5% or more of their portfolios, the report Says.
They are motivated by the view that “cryptocurrencies represent the best opportunity to produce an attractive suited risk of returning over the next three years,” according to the report.
Coinbase, the largest US crypto exchange, and ey-parthenon, a consulting, is based on findings in interviews with more than 350 institutional investors in January.
Among the institutional handling of altcoin, XRP (XRP) and Solana (Sol) was the most popular, the survey was found.
Coinbase and Ey-Parthenon reviews more than 350 crypto financial institutions. Source: Coinbase
Related: Stablecoin Adoption, ETFS to push crypto performance in 2025: Citi
The ETFs of Altcoin
Altcoin handles can increase even if US regulators approve planned Fund-Traded Fund (ETF) lists this year.
Asset managers are waiting for a greenlight from the US Securities and Exchange Commission to list more than a dozen suggested ETFs of Altcoin.
Litecoin (LTC), Sol and XRP are seen as most likely to see close approval, according to Bloomberg Intelligence.
On March 17, the Chicago Mercantile Exchange (CME) Group, the largest US Derivatives Exchange by Volume, launched contracts with futures tied to Sol, Scoring a significant step toward the institutional adoption of altcoin.
Stablecoins and defi take
Meanwhile, Stablecoins continue to detect institutional raids, with 84% of respondents either holding stablecoins or exploration in doing so, the survey found.
According to the report, institutions use “stablecoins for a variety of use cases beyond the simplified crypto transactions, including yield generation (73%), foreign exchange (69%), internal cash management (68%), and external payments (63%).”
In December, Investment Bank Citi said Stablecoin adoption will accelerate onchain activityincluding decentralized finances (defi).
The survey found that only 24% of institutional investors currently use DeFI platforms, but that figure is expected to grow nearly 75% over the next two years.
“Institutions are attracted to the defi for many reasons, citing derivatives, staking, and lending as uses of use that are most interested, followed by closely by accessing altcoins, repairing crossborder, and yield farming,” the report said.
Magazine: Bitcoin’s dominance will fall in 2025: Benjamin Cowen, X Hall of Flame
