Key Developments
The crypto market sell-off since October hasn’t deterred institutional investors, with a new survey showing most plan to increase exposure to digital assets in the coming year.
According to a January survey of 351 institutional investors conducted by Coinbase and EY-Parthenon, 73% of respondents said they plan to increase their allocations of digital assets in 2026, while 74% expect crypto prices to rise over the next 12 months.
Two-thirds of respondents said exchange-traded products (ETPs) and other regulated vehicles have become their preferred way to gain exposure, reflecting growing familiarity with these instruments and a broader shift toward regulated access points. Regulation was also cited as a key factor attracting institutional participation.
On the regulatory front, more than three-quarters of respondents cited market structure as the most important area requiring clarity — a concern that comes as US lawmakers continue to debate legislation defining how digital assets are classified and regulated across agencies.
Market Context
Market volatility, however, is reshaping how institutions approach crypto. Nearly half (49%) of respondents said recent turbulence has led them to place greater emphasis on risk management, liquidity and position sizing, rather than reducing exposure.
One of the key takeaways from the survey is growing institutional interest in emerging blockchain use cases such as stablecoins and tokenized real-world assets (RWAs).
What To Watch
According to the findings, 85% of respondents use or plan to use stablecoins for payments and treasury operations, with settlement and internal cash management cited as primary use cases.
Part of that momentum is being driven by US regulatory developments, with 83% of respondents saying the passage of the GENIUS Act will increase financial institutions’ willingness to engage with stablecoins. More than two-thirds (69%) said the law will drive broader adoption of stablecoin-based transactions.
Meanwhile, interest in tokenized assets continues to grow, with 63% of investors expressing interest in gaining exposure and 61% expecting tokenization to have a significant impact on market structure in the coming years.
Related: More from DeFi & Stablecoins | Onchain Credit Takes Center Stage Over Crypto Cards in Stablecoin | World IDs Verifies New AI Agents with AgentKit in Stablecoin
