According to the latest Future Finance 2025 report from Swiss digital asset bank Sygnum, the approach of institutional investors towards digital assets is undergoing a fundamental change. For the first time, portfolio diversification has surpassed short-term profit potential as the top reason for investing in crypto.
The report, based on a survey of over 1,000 institutional and professional investors across 43 countries at the end of Q3, shows that 57% of respondents see portfolio diversification as the main driver, surpassing short-term profit targets (53%).
Fabian Dori, Chief Investment Officer (CIO) at Sygnum, stated: “We interpret these findings as evidence that crypto assets are evolving into a strategic, long-term asset class, with unique value drivers and risk factors.”
Signals of Maturity in the Crypto Market
The report from #Sygnum outlines a picture of a maturing market, where passive exposure strategies are gradually being replaced by discretionary mandates and actively managed strategies.
More than 60% of surveyed institutional crypto investors plan to increase their crypto asset allocation, while only 4% intend to reduce their exposure. However, optimism remains dependent on expected market catalysts in the final quarter of the year, including ETF approvals and regulatory clarity in the U.S.
Lucas Schweiger, head of Sygnum's crypto asset ecosystem research department and author of the report, noted that the 2025 narrative is shaped by "measured risks, pending regulatory decisions, and strong demand catalysts amid financial and geopolitical pressures."
Bitcoin Considered a Reserve Treasury Asset
The acceptance of crypto in traditional finance (TradFi) is significantly increasing:
Over 80% of respondents view $BTC as a viable treasury reserve asset, amid concerns over fiat currency.
70% view holding cash instead of Bitcoin as incurring high opportunity costs over the next 5 years.
For high-net-worth individuals (HNWIs), 91% believe that crypto plays a crucial role in preserving long-term wealth against the depreciation of fiat currency. They are increasingly seeking the scarcity and decentralization of Bitcoin as a hedge against macroeconomic instability.
The Biggest Barrier: Regulatory Risks Instead of Volatility
A notable shift is the top barrier to investment. While historical volatility has always been seen as the main barrier, investors this year ranked unclear legal frameworks and high custody risks higher.
Sygnum analysts suggest that jurisdictions with clear regulatory frameworks, such as Switzerland and certain areas of Europe (under MiCA regulation), are benefiting from higher institutional trust. In contrast, the Asia-Pacific (APAC) market is lagging due to tightening restrictions.
Dori noted that regulatory issues "are more pronounced for APAC investors, where regulations face both procedural and negative backlash, as regulators tighten restrictions that could limit exposure to this asset class." He predicts the situation will "significantly improve this year," with record inflows, especially after the GENIUS Act is passed in the U.S.
Additionally, interest in crypto ETFs outside of Bitcoin and $ETH has surged, with 70% of respondents willing to allocate more if staking is allowed in ETFs.
