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Diversification Now Primary Driver Of Institutional Crypto Push, Study Says

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The incentive for institutional cryptocurrency exposure has shifted towards diversification. based on To the Swiss digital asset bank Signature.

Approximately 57% of institutional and professional investors with exposure to cryptocurrency cite portfolio diversification as the main reason they invest in the Sygnum asset class in question A report published Nov. 11 cited a late third-quarter survey of 1,000 investors from 43 countries.

This marks a significant change from the previous year, when 62% of investors cited “exposure to the cryptocurrency megatrend” as the main driver of investment, Sygnum said. This figure dropped to 53 percent this year.

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“This may indicate that cryptocurrency is now being used more consciously as a core portfolio component, with perceived diversification benefits taking precedence over the pursuit of pure upside potential,” Sygnum said.

Sygnum attributed the shift from speculation to diversification to improved digital asset knowledge. According to the report, 78% of investors reported high cryptocurrency and blockchain knowledge; This means a 6% increase compared to 2024.

Sygnum Crypto Asset Research Leader “Investors are now better informed” Lucas Schweiger in question. “Discipline has tempered enthusiasm but not diminished belief in the market’s long-term growth trajectory.”

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Meanwhile, Sygnum said that with the change in incentives comes a change in investment strategies. The majority of investors (42 percent) now prefer actively managed strategies; This is a change from 2024, when 44 percent cited single-token strategies as their preference. Sygnum suggests that investors want to adapt to changing market conditions and better spread risk.

This is followed by passive investment strategies with 39%. bitcoin And Ethereum exchange traded funds The report stated that it was gaining ground. Single-token strategies rank third with 38%.

According to the Sygnum report, 61 percent of survey respondents said they plan to increase their cryptocurrency exposure, citing catalysts such as ETF approvals, corporate treasury acquisitions, and corporate treasury acquisitions. expected US cryptocurrency market structure legislation. Meanwhile, about 34% said they plan to hold their positions until market conditions improve.

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Bitcoin is down nearly 20% from last month’s record high of $126,000. leverage flush It was caused by US-China trade tensions. As is typical, the decline in altcoins was even worse.

Still, only 4% of respondents said they plan to reduce their exposure, Sygnum said. The primary reason for reducing risk was that cryptocurrencies offer a lower investment case than traditional assets.

Despite Entry into force of Markets within the framework of Crypto Assets in the EU and GENIUS Act In the US, the majority of investors (40%) cited regulatory uncertainty as the most significant barrier to entry into the cryptocurrency market, with custody and security concerns at 38% and asset volatility at 36%.

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This article ‘Crypto is Now Being Used More Consciously as a Core Portfolio Component’: Diversification is Now the Primary Driver of Institutional Crypto Promotion, Study Says originally appeared Benzinga.com

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