A new survey by Binance Research, the research arm of the world’s largest cryptocurrency exchange, found that most institutional investors are optimistic about the outlook of cryptocurrencies for the next 12 months.
Binance Research conducted the survey from March 31 to May 15, 2023, with 208 global institutional clients and VIP users as the respondents. The study, dubbed the “Institutional Crypto Outlook Survey,” explored the respondents’ attitudes, preferences, motivations, and adoption toward crypto investments.
A Positive Crypto Outlook
The respondents comprised a diverse mix of institutional investors with various levels of experience and assets under management (AUM). More than 48% of the participants have over five years of crypto investing experience. Funds with crypto AUM below $25 million made up 52.4% of the surveyees, while those with AUM above $100 million accounted for 22.6%.
In the outlook category, 63.5% of the respondents expressed optimism for the crypto sector over the next 12 months. And when the time frame was extended to a decade, 88% of the surveyees indicated a positive outlook for crypto.
Regarding allocation, 47.1% of the participants disclosed that they maintained their crypto holdings over the past year, while 35.6% increased theirs within the same period. About half of the respondents expect to increase their crypto possessions with time, while 4.3% would do the opposite in the next year.
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Investors’ interests were focused on layer-1 and layer-2 sectors and infrastructure. Roughly 54% of participants found infrastructure most important to them or their fund, followed by layer-1 and layer-2 sectors at 48.1% and 43.8%. Decentralized applications (dApps) were discovered to be the most used in recent months.
Driving Crypto Adoption
Furthermore, the respondents expressed their belief in more real-world use cases and improvements in regulatory clarity fueling the drive for crypto adoption. Approximately 27% demanded more real-world use cases, while 25.3% asked for regulatory clarity.
The need for increased institutional participation through banks and other financial institutions also emerged as another driver of crypto adoption, followed by stronger security like fraud detection and custody solutions.
“The results highlight institutional investors’ belief in broad ecosystem developments rather than short-term price action in driving widespread crypto adoption,” the report stated.
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