Coinbase and EYParthenon Survey Reveals Institutional Investor's Expanding Appetite for Digital Assets

Highlights

• 86% of institutional investors surveyed have digital asset exposure or plan allocations in 2025
• Nearly 60% plan to allocate more than 5% of their AUM to cryptocurrencies
• Regulatory clarity remains the top catalyst for industry growth

Coinbase, in collaboration with EYParthenon, conducted a comprehensive survey of 352 institutional investors to better understand how global institutions perceive digital assets, including their sentiment, allocation strategies, and future expectations. The findings, released in January 2025, highlight an accelerated trend of adoption and diversification across the sector.

The report revealed that 86% of respondents already hold or plan to hold digital assets in 2025. Notably, 85% of investors increased allocations in 2024, with a similar proportion planning to continue doing so this year.

Larger Allocations Expected in 2025

Institutional investors are preparing to commit greater resources to crypto markets. According to the survey, 59% of respondents plan to allocate more than 5% of their assets under management (AUM) to cryptocurrencies in 2025. This trend is particularly favourable among U.S.-based investors and hedge funds, who expressed a higher willingness to increase allocations compared to other regions.

The survey also showed a shift beyond Bitcoin and Ethereum, with 73% of investors now holding one or more altcoins, led by hedge funds at 80%. Interest in diversified crypto investment products such as exchange-traded products (ETPs), altcoin-focused funds, and U.S.-based perpetual futures is also on the rise.

DeFi Engagement Expected to Triple

While only 24% of respondents currently engage with decentralised finance (DeFi) protocols, this figure is projected to rise sharply to 75% within the next two years. Activities such as staking, lending, and derivatives trading are expected to be key areas of focus, reflecting a maturing approach to digital asset strategies.

Stablecoins and Tokenisation on the Rise

Nearly half of respondents reported using stablecoins, citing yield generation, transactional efficiency, and foreign exchange as their primary use cases. With their promise of instant settlement and lower transaction costs, stablecoins are seen as a crucial step toward digital asset integration into traditional finance.

The survey also highlighted institutional interest in tokenised assets, with 57% of respondents looking to invest in tokenised vehicles such as alternative funds, private equity, and real estate.

Regulation Seen as Risk and Opportunity

Despite growing confidence, regulatory uncertainty remains a central concern for institutional investors. Respondents consistently identified regulatory clarity as the number one catalyst for industry growth, while also recognising it as their primary source of risk. Key areas of focus include custody frameworks, tax treatment, the role of stablecoins, and the permissibility of various crypto-related activities.

With governments and regulators—particularly in the U.S.—taking steps toward clearer guidance, the industry is poised for further expansion.

Market Outlook for 2025

Institutional investors remain optimistic about the future of digital assets. Nearly 80% expect cryptocurrency prices to rise in 2025, while almost 70% believe digital assets present the strongest opportunity for generating attractive risk-adjusted returns compared to other asset classes.

With allocations set to expand, stablecoins gaining momentum, tokenisation opening new avenues, and DeFi engagement set to multiply, the year ahead promises significant institutional participation. Coupled with emerging regulatory clarity, digital assets are steadily solidifying their place within the global financial system.