Swiss digital bank Sygnum says nearly 60% of institutional investors bet long on crypto

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As a seasoned researcher who has witnessed the digital transformation of finance and investment landscapes over the past decade, I find it fascinating to see institutional investors increasingly prioritizing exposure to web3 assets amidst global economic uncertainty. With my own portfolio diversified across various asset classes, I can relate to the growing confidence in crypto’s long-term potential, especially when it comes to portfolio diversification and macroeconomic hedging.

Institutional investors are emphasizing their interest in digital currencies with potential for future growth, as they seek ways to invest in web3 assets during periods of international economic instability, according to Sygnum Bank’s findings.

Wealthy investors are increasingly convinced that cryptocurrencies have long-term value, primarily due to their desire for portfolio diversification and protection against economic instability. A recent study by Sygnum, a digital bank based in Switzerland, reveals that the large majority of its 400+ global participants are concentrating on the long-term growth prospects of cryptocurrencies.

The report attributes the confidence to expectations of higher returns as well as the emerging crypto “megatrend,” which is boosted by strong interest in the space.

According to the latest findings, a key focus remains on diversification. Institutional investors are actively working to shield themselves from economic and political risks such as potential recessions and international conflicts. Notably, Bitcoin (BTC) is regaining interest among those looking for secure investment options, often referred to as “safe haven assets,” due to its limited supply, much like gold.

Although investors appear optimistic, the immediate forecast shows a blend of opinions, with over half of them choosing to maintain a balanced approach going into Q4 2024, according to the Swiss bank’s analysis.

The main difficulties in cryptocurrency investment currently are high asset volatility, concerns about safety and storage, and uncertainties regarding regulations.

Sygnum

Some people are eagerly waiting for confirmation of ongoing market expansion, while others exhibit caution due to the influence of global political events.

At present, there’s a significant trend among investors towards layer-1 protocols and web3 infrastructure. The appeal lies in their strong association with Bitcoin and Ethereum (ETH), as well as scalable alternatives. However, it’s important to note that the dynamic is also influenced by crypto exchange-traded products, as numerous investors prefer direct ownership of cryptocurrency assets rather than indirect exposure.

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2024-11-14 13:20