Sygnum: Investors Favor Crypto Diversification

A new report from Swiss digital asset bank Sygnum reveals a shift in strategy among institutional crypto investors, with diversification now prioritized over short-term gains. The Future Finance 2025 global institutional investor report, based on a late-Q3 survey of over 1,000 investors across 43 countries, found that 57% now cite diversification as the primary reason to invest in digital assets, surpassing short-term return potential (53%).

Over 60% of institutional crypto investors plan to increase their crypto allocations, while just 4% intend to reduce exposure. However, optimism remains tied to anticipated market catalysts in Q4. Fabian Dori, Chief Investment Officer at Sygnum, believes the findings indicate that crypto assets are maturing into a strategic, long-term asset class.

The report highlights a trend towards passive exposure being replaced by discretionary mandates and actively managed strategies. Investors are diversifying into tokenized money market funds, stablecoins, and multi-asset exchange-traded products (ETPs).

More than 70% of respondents would increase allocations if staking were approved for ETFs. A significant 80% view Bitcoin as a viable treasury reserve asset, and 70% consider holding cash over Bitcoin as carrying a high opportunity cost over the next five years.

Regulatory uncertainty and security concerns have overtaken volatility as the primary investment barrier. Sygnum’s analysts suggest that jurisdictions with regulatory clarity, like Switzerland and parts of Europe, are attracting higher institutional confidence. Lucas Schweiger, report author, notes that the 2025 narrative is defined by measured risk and pending regulatory decisions.

Among high-net-worth individuals (HNWIs), 91% believe crypto plays a key role in long-term wealth preservation against fiat currency debasement. Interest in crypto ETFs beyond Bitcoin and Ethereum is also rising, with 70% open to allocating more if staking is permitted.

The findings are linked to concerns about the dollar and EUR performance. Dori emphasized that HNWIs are predominantly focused on long-term investment horizons, and that Bitcoin continues to outperform as purchasing power in the dollar declines.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.