Institutional investors remain broadly bullish on digital assets despite recent market volatility, but are becoming more selective about how they gain exposure, according to a new study from Coinbase and EY-Parthenon.
The January 2026 survey of 351 institutional decision makers found that 73% plan to increase their digital asset allocations this year, while 74% expect crypto prices to rise over the next 12 months. At the same time, nearly half said recent volatility has pushed their firms to place greater emphasis on risk management, liquidity and position size.
This mix of confidence and caution points to a maturing market, said David Duong, Coinbase’s head of institutional research.
“People are still interested in crypto,” Duong said in an interview. “They want to see tighter risk controls, but they want to stay allocated.”
The findings suggest that institutions are no longer treating crypto as a short-term trade. Instead, many build more permanent operating models around the asset class with a heavier focus on management, compliance and operational robustness.
A clear example is how institutions now prefer to access the market. The survey found that 66% of respondents gain exposure through spot crypto exchange-traded funds (ETFs), and 81% prefer spot exposure through a registered vehicle. Duong said that doesn’t mean exchange-traded products are just a temporary step before institutions move fully up the chain.
“I don’t think it’s just a transitional vehicle,” he said. “It caters to a specific segment of the investor community.” Still, he added that as the market develops, more institutions may want exposure to the underlying assets directly rather than only through fund wrappers.
Regulation remains the biggest tension in the market. Among respondents planning to increase holdings, 65% said greater regulatory clarity was a key factor, but 66% also cited regulatory uncertainty as a primary concern when investing in digital assets.
That contrast may become important if clearer rules emerge. “Regulatory clarity acts as both the driver but also the hindrance,” Duong said.
Recent developments surrounding the proposed Digital Asset Market CLARITY Act have added an urgent dynamic. The bill, which aims to define how cryptoassets are regulated in the United States, would clarify the roles of the SEC and CFTC, while setting rules for stablecoins and market structure. While the legislation has yet to be passed, policymakers and regulators have signaled growing support for a clearer framework, and parallel guidance from agencies such as the Office of the Controller of the Currency has begun to outline how banks can engage with digital assets.
For institutions, this evolving background is crucial: clearer rules could unlock wider participation, while continued uncertainty remains a key constraint on capital entering the space.
The survey also found growing interest in stablecoins and tokenization, two areas increasingly seen as practical infrastructure rather than speculative bets. 86 percent of respondents said they already use stablecoins or are interested in using them, with top use cases including T+0 settlement and internal cash management and money movement. Meanwhile, 63% said they are very interested in investing in tokenized assets, and more than 60% expect tokenization to significantly impact trading, clearing and settlement within three to five years.
Parental authority has also moved up higher on the priority list. The proportion of respondents citing compliance with the law as a key factor in choosing a custodian increased to 66% from 25% a year earlier. The importance of security and key signing protocols increased to 66% from 8%.
Duong said the shift reflects how institutions are thinking about crypto differently as use cases expand beyond trading.
“Compliance and security are now the top priorities,” he said. “Interestingly, cost has fallen to the bottom of the list.”
For Coinbase, the message is that institutions still want crypto exposure, but only with stronger safeguards. For the broader market, the study suggests that the next phase of adoption may depend less on enthusiasm alone and more on whether the industry can deliver the scrutiny that large investors now expect.
