🔵 Research: #Institutional Investors in #Europe 🏦 managing #funds over 1 billion dollars each 💰

Out of over 100, there is interest in investing in digital assets: Read more 📚

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- This summary comes from a 2025 survey by Coinbase and EY-Parthenon that spoke with about 100 large investment organizations (like banks and pension funds) in the EU and UK about their interest in digital money and investments, also known as cryptocurrencies or digital assets.

- These organizations manage vast amounts of money, often in the billions, and surveys show they are becoming more involved with crypto, even though it is new and high-tech.

- About 83% of these investors already have some crypto or plan to increase their holdings in 2025, indicating growing comfort.

- 86% say they will increase their crypto holdings in the coming year, similar to trends in the US and elsewhere.

- Half plan to allocate more than 5% of their total portfolio to crypto in 2025, a slight increase from last year - like slicing a small but growing piece of cake for this new thing.

- The majority (71%) of crypto holders do not only hold Bitcoin or Ethereum (the most famous), but also other altcoins like XRP or Dogecoin.

- Stablecoins, which are crypto designed to have a stable value like regular money, are currently used by 42%, and another 34% are interested for fast payments or cash management.

- They prefer to enter crypto through safe and regulated methods, such as special funds called ETPs that trade like stocks - 57% prefer this over direct purchases.

- Almost all (98%) are interested in tokenized assets, which means converting traditional investments like bonds or gold into digital versions for easier trading and mixing in portfolios.

- Only 13% have tried tokenized assets, but 69% plan to get involved by 2026, particularly tokenized gold or oil (interest at 56% higher than in the US).

- Decentralized Finance (DeFi), which functions like a bank but operates through computer code without intermediaries, is currently used by 27%, but is expected to rise to 68% in two years - a 2.5 times increase.

- The main reasons for entering crypto: expecting better returns than stocks or bonds (56%), betting on cool technologies (51%), and it does not move in line with other investments (39%), which helps diversify risk.

- Investors in the EU and UK prefer a more diverse range of crypto options than in the US, where people focus more on Bitcoin.

- Challenges include concerns about changing regulations (the number one issue), price volatility, asset security, and fraud in the market.

- For DeFi specifically, the major issues are insufficient team knowledge (66%) plus regulatory concerns (62%).

- They see clearer government regulations as the most important factor to help drive crypto, such as licenses for companies and better tax information.

- Education is key - many say that learning more about crypto will help overcome barriers and accelerate acceptance.

- Compared to the US, groups in the EU/UK have larger average funds and more asset managers but fewer pension funds.

- Overall, sentiment is positive: Crypto is seen as a way to modernize investment, with plans for more money to flow in once regulations are clear and technology improves.

- This survey highlights that even though they are large and cautious investors, they are becoming more comfortable with crypto, which may make it mainstream for everyone in the years to come.

Survey data: January 13, 2025–January 24, 2025

Source: Increasing Engagement & Rising Allocations in Digital Assets 2025 Institutional Investor

Digital Assets Survey: EU & UK Perspectives

🟦 By Coinbase 🔵 & EY-Parthenon

#EarthDeFIRE Report 28/07/2025