83% of Institutions Plan to Boost Crypto Holdings in 2025: Survey

Highlights:

• A survey reveals that 83% of institutional investors plan to increase their cryptocurrency allocations this year.
• 59% of investors will allocate at least 5% of assets to digital assets.
• 84% of investors use or consider stablecoins for more than just transactions.

A new survey by Coinbase, the largest crypto exchange in the U.S., and EY-Parthenon reveals that institutional investors are growing more bullish on cryptocurrency, with 83% planning to increase their allocations this year. The findings were based on interviews with over 350 institutional investors conducted in January.

More than half (59%) of those surveyed plan to allocate at least 5% or more of their assets to digital assets this year. This shift indicates that crypto is transitioning from a niche investment to a core component of institutional portfolios. The report suggests that they believe cryptocurrencies provide the best opportunity for attractive risk-adjusted returns over the next three years.

83% of institutions plan to up crypto allocations in 2025: Coinbase

Institutional investors are increasingly bullish on cryptocurrency, with 83% saying they plan to up crypto allocations in 2025, according to a March 18 report by Coinbase and EY-Parthenon. 

Already, nearly …

— NORQUE-NOQ (@NorqueNoq) March 18, 2025

Institutional Interest in Stablecoins and DeFi Set to Grow

Stablecoins are gaining popularity among institutions, with 84% of investors using or considering them for more than transactions. Institutions utilize stablecoins for yield earning (73%), foreign exchange (69%), cash management (68%), and payments (63%).

DeFi is still new to institutions but is expected to grow fast. The survey revealed that only 24% of institutional investors currently use DeFi platforms. However, this figure is expected to grow to nearly 75% within the next two years.

The report said:

“Institutions are attracted to DeFi for myriad reasons, citing derivatives, staking, and lending as the use cases they are most interested in, followed closely by access to altcoins, crossborder settlements, and yield farming.” 

Altcoin Demand Grows as ETF Approval Nears

73% of respondents reported owning assets besides Bitcoin and Ethereum, showing continued strong interest in altcoins. Solana (SOL) and Ripple (XRP) are the most commonly held.

Moreover, 68% of investors expressed interest in exchange-traded products (ETPs) that provide single-asset exposure to digital assets. Altcoin holdings may grow if U.S. regulators approve new ETF listings, with asset managers waiting for SEC approval on several proposals. Bloomberg Intelligence sees Litecoin (LTC), Solana, and XRP as the most likely for near-term ETF approval. 

Regulatory Uncertainty Impacting Crypto Adoption

Regulatory uncertainty is a major challenge, with 52% of investors citing it as their top concern, followed by volatility (47%) and security (33%). However, 68% believe clearer regulations will boost institutional crypto adoption. Institutional crypto adoption is rising despite regulatory and market challenges, driven by increased investments, diverse use cases, and expanding product interest.