Over 60% of Institutional Investors Bullish on Crypto for Next 12 Months: Survey

A new survey by Binance Research, the research arm of the world’s largest cryptocurrency exchange, found that most institutional investors are optimistic about the cryptocurrency outlook for the next 12 months.

Binance Research conducted the survey from March 31 to May 15, 2023, with 208 global institutional clients and VIP users as respondents. The study, calledInstitutional Crypto Outlook SurveyExploring respondents’ attitudes, preferences, motivations, and dependencies toward crypto investments.

Positive crypto outlook

Respondents consisted of a diverse mix of institutional investors with varying levels of experience and assets under management (AUM). Over 48% of respondents have more than five years of crypto investment experience. Funds with crypto assets worth less than $25 million made up 52.4% of the respondents, while funds with crypto assets worth more than $100 million made up 22.6%.

In the outlook category, 63.5% of respondents expressed optimism about the crypto sector over the next 12 months. And when the time frame was extended to a decade, 88% of the survey respondents indicated a positive view of cryptocurrency.

In terms of allocation, 47.1% of respondents disclosed that they have maintained their cryptocurrency holdings over the past year, while 35.6% have increased their holdings over the same period. About half of the respondents expect to increase their crypto holdings over time, while 4.3% will do the opposite in the next year.

Investors’ interests focused on the first and second tier and infrastructure sectors. Almost 54% of respondents found infrastructure to be most important to them or their funds, followed by the Tier 1 and Tier 2 sectors at 48.1% and 43.8%. Decentralized applications (dApps) have been found to be the most used in recent months.

Adopt encrypted driving

Moreover, respondents believed that there are more real-world use cases and improvements in regulatory clarity fueling the drive to adopt cryptocurrencies. About 27% asked for more real-world use cases, while 25.3% asked for regulatory clarification.

The need for greater institutional involvement through banks and other financial institutions has also emerged as another driver of crypto adoption, followed by stronger security such as fraud detection and custody solutions.

“The findings highlight institutional investors’ faith in broad ecosystem developments rather than short-term price action in driving widespread cryptocurrency adoption,” the report stated.