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Institutional investors are increasing their crypto allocations, with 83% of those surveyed by Coinbase planning to invest more in 2025, driven by strong returns, growing DeFi adoption, and expanding stablecoin use.
Coinbase Survey Shows Institutional Confidence in Crypto Soaring
Crypto exchange Coinbase (Nasdaq: COIN) published the results of its Institutional Investor Survey on March 18, revealing that a significant majority of institutional investors are planning to increase their exposure to digital assets this year. Conducted in January in collaboration with EY-Parthenon, the survey gathered insights from decision-makers at 352 firms. Coinbase shared:
An overwhelming majority (83%) of surveyed investors plan to increase their allocations to crypto in 2025, driven by their view that cryptocurrencies represent the best opportunity to generate attractive risk-adjusted returns over the next three years.
Additionally, 59% of respondents indicated that they plan to allocate more than 5% of their assets under management (AUM) to crypto, underscoring its growing role in institutional portfolios.
The survey also pointed to increasing interest in stablecoins, with 84% of respondents either using or considering their use for applications beyond transactions, including “generating yield (73%), foreign exchange (69%), internal cash management (68%), and external payments (63%).” Institutional investors are also diversifying into altcoins, with XRP and solana ( SOL) being the most commonly held assets.
Meanwhile, engagement with decentralized finance (DeFi) is expected to surge, as the percentage of investors interacting with DeFi is projected to rise from 24% to 75% within two years. Despite this momentum, regulatory uncertainty remains a key concern: “Increased investor interest is driven in part by the belief that greater regulatory clarity will be the catalyst that unlocks a new wave of opportunities in digital assets, particularly with regard to custody. At the same time, the still-developing regulatory landscape is viewed as one of the main challenges facing the industry.”
Despite challenges, institutional optimism remains strong. Coinbase noted:
The survey results clearly point to institutions deepening their engagement with crypto in 2025. From making larger allocations, to increasing use cases, to engaging with new products, all signs indicate positive momentum.
While volatility and macroeconomic factors remain potential hurdles, the company remains confident in the long-term outlook for digital assets: “We firmly believe that the future is bright for crypto, and that institutional investors’ optimism will prove to be well-founded.”