Despite the cautious outlook, most investors still plan to maintain or increase crypto holdings.
Institutional investors are turning cautious on crypto even as most plan to maintain or grow their holdings, according to Sygnum’s Future Finance 2025 report released Tuesday.
The survey of more than 1,000 investors across 43 countries found that sentiment has shifted to neutral or bearish in late 2025, with many waiting for clearer rules and new market drivers before investing more. Still, 60% plan to increase their crypto holdings this year, while only 4% expect to reduce them.
More than 80% of respondents see Bitcoin (BTC) as a valid treasury reserve, and 70% say holding cash instead of Bitcoin could be a missed opportunity over the next five years. Bitcoin is trading at $105,600, up 1% on the day. Among wealthy investors, 91% view crypto as a safeguard against money losing value.
The report emphasized that, for the first time, a majority of respondents (57%) cited diversification as their primary goal, compared with 53% for short-term returns and 45% for macro hedging.
The shift underscores further how investors are treating digital assets as part of broader, long-term portfolio strategies rather than short-term speculative bets.
Half of respondents also revealed they already hold stablecoins, and 70% would invest more in crypto exchange-traded funds (ETFs) if staking were allowed, according to the report. Currently, the broader stablecoin market has grown to over $304 billion – up sharply from $206 billion in January, according to data from DeFiLlama.
Lucas Schweiger, the report’s author, says “digital assets and traditional finance are now intertwined more than ever through legislation, regulated derivatives, corporate demand and exciting new tokenisation and stablecoin trends.”
Earlier this year, the U.S. House of Representatives passed three major cryptocurrency bills – the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the Clarity Act, and the Anti-CBDC Surveillance State Act.
Schweiger said 2025 is shaping up to be a year of “measured risk, pending regulatory decisions and powerful demand catalysts” with investors showing more caution but still confident in the long-term outlook.
Sygnum highlighted that the biggest barriers to investing in crypto remain unclear regulations and concerns around security and custody.