According to Sygnum Bank's Future Finance report, institutional investors are increasingly optimistic about cryptocurrencies. According to the report, 57% of respondents intend to increase their cryptocurrency allocation. Of these, 31% plan to do so during the next quarter.

Clearer worldwide regulations are fueling this favorable sentiment. The introduction of US Bitcoin Spot ETFs is a possible trigger for increased institutional use.

The poll, which included 400 investors from 27 nations, revealed a high-risk appetite. Only 5% intend to lessen their cryptocurrency exposure.

Single-token investments remain popular, with 44% choosing this strategy. Regulatory clarity has shifted the attention away from compliance and toward market-specific risks. However, volatility and security concerns remain major challenges.

Investors are interested in scalable layer-1 solutions, specifically Bitcoin, Solana, and stablecoins. Web3 infrastructure is gaining traction, whereas DeFi interest has waned owing to security vulnerabilities.

Institutional preferences have migrated away from real estate and toward stock, corporate bonds, and mutual funds since 2023. This trend reflects a growing belief in the crypto market's long-term potential.