It has been just revealed the fact that more than 60% of institutional investors have an optimistic view on crypto for the next year. Check out the latest reports about this below.
Institutional players are seeing great future for crypto in 2024
According to a recent report from Binance, 63.5% of respondents have a positive outlook for the crypto industry in the next year, and 88% hold the same view for the next decade.
However, the ‘Institutional Crypto Outlook Survey’ also revealed that only 26.9% of institutional users believe that real-world use cases will drive the adoption of the sector.
It is important to note that the survey respondents are currently involved in the industry. The survey gathered responses from 208 institutional clients and VIP users of Binance from March 31 to May 15, 2023.
The report, which was released on Friday, highlighted that 25.3% of respondents identified regulatory clarity as a significant factor in promoting crypto adoption.
Additionally, the respondents emphasized that more institutional participation, including crypto-friendly banks and other financial institutions, would also contribute to driving growth in the industry.
According to the report, nearly half of institutional investors, or 47.1%, have kept their crypto allocation consistent over the past year.
Additionally, more than one-third of investors, amounting to 35.6%, have increased their allocation during the same period.
Looking ahead to the future, 50% of investors plan to increase their allocation, while only 4.3% intend to reduce their crypto allocation in the next 12 months.
According to the survey responses from institutional investors, 44.7% of them used cryptocurrency for intraday strategies. Meanwhile, 23.1% of the respondents cited market-making and arbitrage activities as their next most common use case for crypto.
More than half of the respondents managed less than $25 million in cryptocurrency, whereas 22.6% had a crypto allocation exceeding $100 million.
“Interestingly, for funds with an AUM above $75 million, portfolio diversification surfaced as an additional motivation to invest in cryptocurrencies,” the report stated.
