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62% of Institutional Investors Increased Their Crypto Allocation Last Year

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62% of institutional investors in the crypto market have increased their allocation to digital currencies in the last 12 months. Only 12% of the respondents informed that they have decreased their crypto allocation. This shows there is still a large interest in Bitcoin (BTC) and other digital currencies despite the current market conditions. This is according to a recent institutional investor survey conducted in 2022 by the institutional branch of the Coinbase cryptocurrency exchange. 

62% of Investors Increased their Crypto Allocation

In a recent report released by Coinbase, institutional investors show a large interest in the crypto market despite the most recent bear trend that affected digital currencies this year. It is worth taking into consideration that the survey conducted by Institutional Investor Custom Research Lab, took into consideration decision-makers at U.S. institutions. These investors are currently managing $2.6 trillion in assets. 

The results show that institutions have increased their allocation during the crypto winter. For example, in the last 12 months, allocation to virtual currencies increased by 62% in the last twelve months, while 26% of investors claimed that their allocation remained the same. 12% of the investors decreased their allocation. 

The report reads as follows:

“We examined changes in digital asset allocations in the survey and found that 62% of investors who are currently invested in crypto increased their allocations in the past 12 months (vs. 12% who decreased their allocations).”

When it comes to the next three years, Investor Custom Research Lab asked about the future of the crypto market and what they want to do in the next three years. 58% of the investors claimed that they will increase their allocation while 36% said that their investments in digital assets will remain the same as now. Meanwhile, just 6% of the respondents answered that they are expected to decrease their allocation to crypto. 

It is worth taking into consideration that since November 2021 until today, Bitcoin fell by over 75% from $69,000 to below $16,000. This shows that there has been a strong bear market that pushed the price of most digital currencies lower and affected the crypto market as a whole. Multiple firms have already imploded and many others could be affected in the future. 

Luna and FTX are just two of the most recent examples of what can happen to digital currency firms and companies. Nevertheless, the report released by Coinbase shows that sentiment towards digital assets has remained positive. 72% of the respondents said that virtual currencies are here to stay. 

According to data shared by CoinGecko, Bitcoin is now being traded at $16,500 and it has a market capitalization of $318 billion. Other virtual currencies such as Ethereum (ETH), Binance Coin (BNB) and XRP, have also moved lower in recent years. Meanwhile, Ethereum is being traded at close to $1,200 per coin, followed by Binance Coin at $300, and XRP at $0.398. Investors are now trying to understand whether the crypto market bottomed or if it will continue to move higher in the coming months.

Jonathan Gibson

Jonathan Gibson

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