Despite the crypto market’s downturn since October, institutional investors remain optimistic about the future of digital assets. A January survey conducted by Coinbase and EY-Parthenon, involving 351 institutional investors, reveals that 73% plan to increase their allocations of digital assets in 2026, while 74% expect crypto prices to rise over the next 12 months.
Regulation and ETPs Gain Traction
Two-thirds of the respondents have shifted their focus to exchange-traded products (ETPs) and other regulated vehicles, signaling a growing preference for structured and regulated access to the crypto market. This shift reflects a broader trend towards regulatory compliance and the increasing familiarity of institutional investors with these instruments.
Market Structure and Regulatory Clarity
More than three-quarters of the surveyed investors cited market structure as the most critical area requiring regulatory clarity. This concern is particularly relevant as U.S. lawmakers continue to debate legislation defining the classification and regulation of digital assets across various agencies. The clarity in market structure is seen as a key factor in attracting more institutional participation.
Adapting to Market Volatility
Market volatility has prompted nearly half (49%) of the respondents to place greater emphasis on risk management, liquidity, and position sizing. While some institutions might have initially considered reducing their exposure, the survey indicates a more nuanced approach, focusing on strategic risk mitigation rather than outright withdrawal.
Stablecoins and Tokenized Assets Gain Momentum
One of the survey’s key findings is the growing interest in stablecoins and tokenized real-world assets (RWAs). According to the data, 85% of respondents use or plan to use stablecoins for payments and treasury operations, with settlement and internal cash management being the primary use cases. The passage of the GENIUS Act is seen as a catalyst, with 83% of respondents expecting it to increase financial institutions’ willingness to engage with stablecoins.
Tokenized assets are also gaining traction, with 63% of investors expressing interest in gaining exposure and 61% expecting tokenization to significantly impact market structure in the coming years. The ability to tokenize real-world assets is viewed as a transformative development, potentially bridging the gap between traditional finance and the digital asset ecosystem.
Conclusion
The survey underscores the resilience and optimism of institutional investors in the crypto market. Despite the recent volatility, the focus on regulated access, risk management, and innovative use cases like stablecoins and tokenized assets suggests a maturing and expanding digital asset landscape. As regulatory frameworks continue to evolve, the institutional adoption of crypto is likely to accelerate, shaping the future of finance and investment.
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