2023-7-9 22:44 |
According to a recent survey conducted by Binance, a staggering 88% of institutional investors have expressed a bullish outlook for the next decade in the world of cryptocurrency.
The “Institutional Crypto Outlook Survey” survey collected responses from 208 Binance institutional clients and VIP users from March 31 to May 15, 2023, providing valuable insights into their attitudes, preferences, adoption, and motivations regarding cryptocurrency investments.
One of the most notable findings is that 63.5% of the respondents expressed a positive outlook for crypto in the next 12 months. However, when looking ahead to the next decade, an overwhelming majority of 88% indicated their positive sentiment, indicating a strong belief in the long-term potential of cryptocurrency.
The survey highlights that 47.1% of institutional investors maintained their crypto allocation over the past year, while 35.6% increased their allocation during the same period. The report noted that 50% of respondents expect to increase their allocation to crypto further, demonstrating a growing confidence in the asset class. Interestingly, only 4.3% of respondents anticipate reducing their crypto allocation in the next 12 months.
Regarding areas of interest, the survey also revealed that institutional investors are particularly focused on infrastructure, with 53.9% of respondents considering it the most important sector for them or their funds.
“Infrastructure, L1 and L2 are areas of focus among institutional investors. 53.9% of investors found infrastructure to be the sector of most importance to them or their funds. This was closely followed by L1 and L2 sectors at 48.1% and 43.8%, respectively. In terms of usage, DeFi dApps were the most widely used in recent months,” the survey report noted.
Notably, regulatory risk emerged as the primary concern for institutional investors, followed by counterparty and custody risks for institutional investors. Interestingly, price volatility did not deter the group, with most expressing high comfort levels with cryptocurrency volatility.
However, the survey highlighted that institutional investors believe increased real-world use cases and regulatory clarity will drive cryptocurrency adoption. As the industry matures, these investors foresee a growing acceptance of cryptocurrencies in mainstream applications and a more supportive regulatory environment.
The survey comes on the heels of heightened scrutiny over the crypto market, with the U.S. Securities and Exchange Commission (SEC) recently filing lawsuits against Binance and Coinbase in its crypto enforcement barrage. However, institutions have remained undeterred, as demonstrated by the numerous Spot Bitcoin ETF filings by prominent firms such as WisdomTree, BlackRock, VanEck, and Fidelity.
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