Sygnum’s new report shows institutions moving from speculation to diversification as they raise crypto exposure and wait for new ETF approvals.
Institutional investors have changed how they approach digital assets. Diversification now guides most allocation decisions, as shown in Sygnum’s new Future Finance survey.
The findings of this survey show a trend toward long-term thinking as investors reduce their focus on short-term gains.
Diversification Now Leads Institutional Crypto Strategy
Sygnum surveyed more than 1,000 institutional and professional investors across 43 countries for their approach to crypto investment, and the results showed a clear change.
Diversification stood at 57 percent as the main reason to invest, while Short-term return targets followed at 53 percent.
More than 60 percent of respondents plan to increase their crypto exposure and only 4 percent expect to scale back. These numbers show that there is a steady confidence despite market stress.
Investors want a mix of assets rather than strong concentration in a small set of tokens.
Investors Seek Active Strategies Across Assets
The report also shows a rise in interest when it comes to discretionary mandates and active management.
Institutions want more control over their portfolios, and that trend has driven demand for tokenized money market funds, stablecoins and multi-asset ETPs. These products allow flexible positioning without deep exposure to single coins.
More than 70 percent of respondents said they would raise allocations if staking becomes available for ETFs. This shows strong interest in earning yield inside regulated structures. Investors want products that match traditional finance standards while offering crypto-specific rewards.
The findings also show a rise in acceptance of digital assets in traditional settings. More than 80% see Bitcoin as a valid treasury reserve while about 70 percent said holding cash instead of Bitcoin could bring a high opportunity cost over the next five years.
Regulation and Security As Obstacles
Unclear regulation has replaced volatility as the biggest barrier to institutional adoption.
Another major barrier is custody risks. All of this means that investors want clear rules, defined tax treatment and strong security standards.
Jurisdictions like Switzerland and parts of Europe benefit from these conditions and MiCA has strengthened trust across the region.
📣 News: Diversification Replaces Speculation as Core Investment Thesis for Institutional Crypto Investors
Sygnum has revealed the results of its Future Finance 2025 global institutional investor report.
▪️ Over 60% plan to increase their digital asset allocations and only 4%… pic.twitter.com/QQdTRxvme4
— Sygnum Bank (@sygnumofficial) November 11, 2025
High-net-worth individuals also seemed to have an even stronger conviction. About 91 percent believe crypto helps preserve long-term wealth and concerns over fiat currency stability strengthened this view.
Many are pointing to Bitcoin’s scarcity and decentralization as reasons to hold a share of their assets outside traditional systems.
October’s correction did not dampen confidence and Sygnum reported that 61 percent of institutions still plan to raise exposure in the months ahead.
About 55 percent hold a bullish short-term view and most respondents expect higher future returns despite the recent mass liquidations.
Institutions Track New Catalysts After October’s Crash
Institutions want confirmation that delayed market catalysts will arrive soon. The Market Structure bill and pending ETF approvals have created uncertainty. The U.S. government shutdown also delayed at least 16 crypto ETF applications and these included requests tied to assets beyond Bitcoin and Ethereum.
Sygnum expects that the end of the shutdown could bring bulk approvals for several altcoin ETFs.
Such decisions could support a new round of institutional inflows and investors are also tracking macro conditions.
In all, institutional participation remains strong even as the market recovers from the October crash. ETF applications, expanding product structures and rising interest in long-term allocation support this trend.
Regulatory clarity will affect regional differences and markets with clear rules will attract more activity.
Yet global interest in crypto continues to be high and these developments may set the tone for 2026, as institutions shift from speculation toward exposure.