Institutional investors maintain confidence in digital assets despite a sharp market correction in October, with most planning to expand their exposure in the coming months, according to a new study.
More than 61% of institutions plan to increase their investments in cryptocurrencies, while 55% of them have a bullish outlook in the short term, Swiss crypto banking group Sygnum said in a report published on Tuesday. The survey covered 1,000 institutional investors worldwide.
Around 73% of institutions surveyed are investing in crypto due to expectations of higher future returns, even as the sector is still recovering from the record $20 billion stock market crash in early October.
However, investor sentiment remains facing uncertainty due to delays in key market catalysts, including the Market Structure Bill and the approval of more altcoin exchange-traded funds (ETFs).
Related: Crypto investors shun visibility for anonymity as privacy coins surge 80%
While this uncertainty may continue through 2026, Lucas Schweiger, Sygnum’s principal crypto asset ecosystem researcher, predicts a maturing digital asset market, where institutions seek diversified exposure with long-term growth expectations.
“The story of 2025 is one of measured risk, pending regulatory decisions and powerful demand catalysts amid fiscal and geopolitical pressures,” he said, adding:
“But investors are now better informed. Discipline has tempered exuberance, but not conviction, in the market’s long-term growth trajectory.”
Despite October’s correction, “strong demand catalysts” and institutional participation remained at an all-time high, with the growing number of ETF applications signaling increased institutional demand, Schweiger added.
At least 16 crypto ETF applications are currently awaiting approval, which have been delayed by the ongoing US government shutdown, now in its 40th day.
Related: China’s Budget AI Bots Crush ChatGPT in Head-to-Head With Cryptocurrency Trading
Crypto Staking ETFs Could Be the Next Institutional Catalyst
Crypto staking ETFs could be the next fundamental catalyst for institutional demand for cryptocurrency.
More than 80% of institutions surveyed expressed interest in crypto ETFs beyond Bitcoin (BTC) and Ether (ETH), while 70% said they would start investing or increase their investments if these ETFs offered staking rewards.
Staking means locking your tokens in a proof-of-stake (PoS) blockchain network for a predetermined period of time to secure the network and earn passive income in exchange.
Meanwhile, investors are now anticipating the end of the government shutdown, which could lead to “massive approvals” for altcoin ETFs from the U.S. Securities and Exchange Commission, catalyzing the “next wave of institutional flows,” according to Sygnum.
Review: Bitcoin will see “another big push” to $150,000, pressure on ETH increases
