While the Bitcoin price has become increasingly gloomy in recent weeks, leaving many private investors feeling uncertain, something big seems to be brewing behind the scenes. A brand-new study by Coinbase and the consulting firm EY-Parthenon reveals: Institutional investors are sensing a new dawn and are preparing for a massive expansion of their crypto investments.
This trend was already apparent at the beginning of the year, when Bitcoin was still storming toward its all-time high of over $110,000. The survey, conducted in mid-January among more than 350 institutional investors, revealed something astonishing: Over three-quarters of respondents plan to increase their investments in digital assets in 2025. 59 percent even plan to invest more than five percent of their assets under management in cryptocurrencies or related products.
From family office to major bank: Crypto becomes socially acceptable
“Acceptance of crypto, tokenized real-world assets, and DeFi was already high among the wealthiest individuals and family offices,” Paul Brody, Global Blockchain Leader at EY-Parthenon, told The Block. “But now, interest is spilling over into the institutional space.”
The survey was conducted before Donald Trump took office as US president and began staffing his administration with crypto-friendly bureaucrats. A circumstance that could further spur development.
Regulatory Clarity as the Key to Success
The investors surveyed cited increasing “regulatory clarity” as the main reason for the planned increase in crypto allocations. This is an important factor that strengthens confidence in the market. The launch of crypto funds such as BlackRock‘s Spot Bitcoin ETF last year, which attracted billions in new capital, underscores this development.
The study also shows that 60 percent of investors prefer access to crypto through regulated vehicles such as exchange-traded funds (ETFs). But Bitcoin isn’t the only thing in the spotlight. 74 percent of respondents stated that they are invested in one or more altcoins in addition to Bitcoin and Ether.
Falling Interest Rates as a Catalyst for DeFi?
Brody sees future falling interest rates as another potential driver of demand. “There are many use cases for DeFi, but in the institutional space, I believe demand will only really take off when interest rates fall,” he said. “DeFi provides a mechanism to generate additional returns from the same asset, for example, by adding it to a liquidity pool or borrowing against its value.”
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