Despite significant market corrections in October, research by Swiss crypto bank Sygnum reveals that institutional investors are sticking with crypto assets. A new study shows 61% of institutions plan to increase their crypto holdings in the coming months, with a clear majority (55%) exhibiting a bullish outlook for the short term. This confidence stems from anticipated future returns and a continued belief in the long-term potential of cryptocurrencies.
A significant portion of institutions are holding onto crypto assets despite market drops, with 73% indicating their intention to continue investing even after a $20 billion market correction earlier this month. Sygnum’s Head of Research, Lucas Schweiger, predicts that 2025 will witness increased demand driven by regulatory developments and the expected launch of crypto ETFs in the U.S. Currently, at least 16 applications for Bitcoin (BTC) and Ethereum (ETH) based ETFs are awaiting approval from the SEC.
The report highlights a strong interest among institutions for crypto ETFs beyond just Bitcoin and Ether. Over 80% express an interest in diversifying into other crypto-linked ETFs. Notably, 70% of these institutions would start or increase their investments if such ETFs offered staking yields, suggesting that this could become the next driving force for institutional investment.