Swiss digital bank Sygnum says nearly 60% of institutional investors bet long on crypto

Focusing on the long-term rise of cryptocurrency, Sygnum Bank found that institutional investors are prioritizing web3 assets amid global economic uncertainty.

High-net-worth investors show increased confidence in the long-term potential of cryptocurrencies due to their need for portfolio diversification and macroeconomic hedging. According to a recent survey conducted by Swiss digital bank Sygnum among more than 400 respondents from 27 countries, the majority are focusing on crypto’s long-term growth potential.

📣 News: High-Risk Appetite and Long-Term Confidence Drives 57% of Institutional Investors to Raise Crypto Allocations: Sygnum Future Finance Survey

▪️ 57% of institutional and professional investors plan to increase long-term crypto allocations, demonstrating their high-risk… pic.twitter.com/fFHsz2cpyq

— Sygnum Bank (@sygnumofficial) November 14, 2024

The report attributes the confidence to expectations of higher returns and an emerging crypto “megatrend” supported by strong interest in the space.

Diversification remains a key theme, according to the report. Institutional investors continue to seek protection against macroeconomic risks, including recession fears and geopolitical tensions. The report states that Bitcoin (BTC), which is seen by many as “digital gold” due to its scarcity, has once again attracted attention among investors looking for safe haven assets.

Despite investors’ confidence, the short-term outlook is mixed. According to the Swiss bank, more than 50% of investors adopt a neutral stance towards the 4th quarter of 2024.

“Asset volatility is now the biggest challenge for crypto investing, followed by security and custody concerns and lack of regulatory clarity.”

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Sygnum reported that some are awaiting confirmation of sustainable market growth, while others are remaining cautious due to external geopolitical factors.

Currently, investors appear to be mostly interested in layer 1 protocols and web3 infrastructure, which continue to dominate interest due to the strong presence of Bitcoin and Ethereum (ETH), alongside scalable alternatives. However, Sygnum acknowledges that crypto exchange-traded products are also driving the dynamic, with many investors seeking ownership in crypto assets rather than indirect risk.