Crypto Market Regulatory Clarity was quoted as the top catalyst for growth in the digital asset industry, according to a Crypto Exchange Coinbase study (Coin) and consulting firm EY-Parthenon (EYP).
Coinbase and Ey Parthenon examined 352 institutional investors between January 13 and January 24 this year.
86% of respondents said they had exposure to digital assets or planned to make awards by 2025, and 84% said they had increased assignments to crypto and crypto-related products by 2024.
59% of respondents said they were planning to allocate more than 5% of their assets under management (AUM) to Cryptocurrencies in 2025.
An improved regulatory background under Donald Trump’s new administration is considered a major tailwind to the digital asset industry. The president has promised to make the United States the “crypto capital of the world.”
Altcoins are also becoming more and more popular with institutional investors, according to the study. 73% of respondents said they kept other tokens other than Bitcoin (BTC) and ether (ETH), led by hedge funds to 80%.
About half of the respondents said they are utilizing stableecoins, with dividend production, transactions and currency mentioned as most important use cases.
60% of investors said they preferred to get exposure to crypto via registered vehicles, such as exchange -traded products (ETPs).
The study focused on decision makers in the US and Europe with some participation from investors around the world.
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