According to the Sygnum Future Finance 2025 report on global institutional investors, the approach of institutional crypto investors is evolving: short-term speculation is giving way to diversification as the primary investment strategy.
The Swiss digital asset bank found that over 60% of institutional crypto investors plan to increase their exposure to digital assets, while only 4% intend to reduce it. Nevertheless, optimism remains closely tied to expected market catalysts in the final quarter of the year. The findings are based on a survey of more than 1,000 institutional and professional investors from 43 countries, conducted at the end of Q3 2025. Notably, portfolio diversification (57%) has now overtaken short-term return potential (53%) as the main reason for investing in digital assets.
“These results suggest that crypto assets are increasingly regarded as a strategic, long-term asset class with unique risk and value characteristics,” said Fabian Dori, Chief Investment Officer at Sygnum, in an interview with Decrypt.
Market Context and Investor Sentiment
The report arrives amid market uncertainty in Q4, as investors weigh potential ETF approvals, U.S. regulatory developments, and global financial instability. Liquidations in late October and delayed catalysts have tempered earlier optimism, prompting many investors to adopt a wait-and-see approach.
Lucas Schweiger, lead researcher of Sygnum’s crypto ecosystem, emphasized that in 2025, the landscape will be shaped by measured risk-taking, regulatory decisions, and strong demand catalysts amid geopolitical and financial pressures.
Maturing Crypto Market
The survey indicates a maturing market where passive strategies are being replaced by discretionary mandates and actively managed approaches. Investors are diversifying into tokenized money market funds, stablecoins, and multi-asset exchange-traded products (ETPs), prioritizing balanced and flexible investment strategies.
More than 70% of respondents said they would increase investments if staking were allowed for ETFs, highlighting the sector’s growing complexity.
The report also notes broader recognition of crypto in traditional finance:
- Over 80% of respondents see Bitcoin as a viable reserve asset.
- About 70% believe holding cash instead of Bitcoin entails high opportunity costs over the next five years.
Key Challenges and Regional Differences
Despite growing interest, regulatory uncertainty and asset custody remain the main obstacles. Historically, volatility was the top concern, but this year, unclear legislation and custody risks rank highest.
Markets with established regulatory frameworks, like Switzerland and select EU countries under MiCA, benefit from higher trust among institutional investors. In contrast, Asia-Pacific markets lag due to tightening restrictions.
“Regulatory issues are particularly pronounced in the Asia-Pacific region, where both positive and negative regulatory developments influence investor interest,” said Dori. He added that significant improvements are expected this year, driven by record inflows and a growing list of TradFi organizations entering the market after the U.S. GENIUS Act.
High-Net-Worth Individuals and Long-Term Strategy
Among high-net-worth individuals (HNWIs), 91% view crypto as a critical tool for long-term wealth preservation, especially amid fiat depreciation. Interest in crypto ETFs beyond Bitcoin and Ethereum has also increased, with 70% willing to invest more if staking is allowed.
The report highlights that, amid rising attention to fiat currencies and declining trust in traditional systems, HNWIs increasingly view Bitcoin’s scarcity and decentralization as protection against macroeconomic instability. Digital assets are thus transitioning from speculative instruments to long-term capital preservation tools.
“This trend is closely linked to the U.S. dollar and weak euro performance,” Dori noted. HNWIs focus on long-term horizons, making volatility less relevant, particularly since Bitcoin’s structural volatility has declined in recent years. Bitcoin continues to outperform other assets as dollar purchasing power erodes.
