Clarity of the crypto market regulation was cited as the biggest catalyst for growth in the digital asset industry, according to a study by Crypto Exchange Coinbase (Coin) and consulting firm Ey-Parthenon (EYP).
Coinbase and Ey Parthenon surveyed 352 institutional investors from January 13th to January 24th this year.
Eighty-six percent of those surveyed said they were exposed to digital assets or planned to allocate them in 2025, while 84 percent said they had increased allocations to crypto and crypto-related products in 2024.
59% of respondents said they plan to allocate more than 5% of their management (AUM) to cryptocurrency in 2025.
The improved background to regulations under Donald Trump’s new administration is seen as a major tailwind for the digital asset industry. The President has pledged to make the United States “global crypto capital.”
Research shows that Altcoins are becoming increasingly popular among institutional investors as well. 73% of respondents said they led to 80% of tokens led by hedge funds other than Bitcoin (BTC) and Ether (ETH).
Approximately half of those surveyed said they were using Stable Coins using harvest production, trading and forex, which were cited as the main use cases.
60% of investors said they preferred to get crypto exposure through registered vehicles such as Exchange-Traded products (ETP).
The study focuses on decision makers in the US and Europe, and has attracted participation from investors around the world.
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