83% of institutions plan to up crypto allocations in 2025: Coinbase

Institutional investors are progressively bullish connected cryptocurrency, with 83% saying they program to up crypto allocations successful 2025, according to a March 18 study by Coinbase and EY-Parthenon. 

Already, astir three-quarters of firms surveyed said they clasp cryptocurrencies different than Bitcoin (BTC) and Ether (ETH), and a “significant majority” said they program to boost crypto allocations to 5% oregon much of their portfolios, the study said. 

They are motivated by the presumption that “cryptocurrencies correspond the champion accidental to make charismatic risk-adjusted returns implicit the adjacent 3 years,” according to the report.

Coinbase, the US’ largest crypto exchange, and EY-Parthenon, a consultancy, based the findings connected interviews with much than 350 organization investors successful January. 

Among organization altcoin holdings, XRP (XRP) and Solana (SOL) are the astir popular, the survey found. 

Coinbase and EY-Parthenon surveyed much than 350 fiscal institutions connected crypto. Source: Coinbase

Related: Stablecoin adoption, ETFs to propel crypto show successful 2025: Citi

Altcoin ETFs incoming

Altcoin holdings could emergence adjacent further if US regulators o.k. planned exchange-traded money (ETF) listings this year.

Asset managers are awaiting a greenlight from the US Securities and Exchange Commission to database much than a twelve projected altcoin ETFs. 

Litecoin (LTC), SOL and XRP are seen arsenic the astir apt to spot near-term approval, according to Bloomberg Intelligence. 

On March 17, the Chicago Mercantile Exchange (CME) Group, the largest US derivatives speech by volume, launched futures contracts tied to SOL, marking a important measurement toward organization adoption of the altcoin. 

Stablecoins and DeFi instrumentality off

Meanwhile, stablecoins proceed to spot organization uptake, with 84% of respondents either holding stablecoins oregon exploring doing so, the survey found. 

According to the report, institutions are utilizing “stablecoins for a assortment of usage cases beyond conscionable facilitating crypto transactions, including generating output (73%), overseas speech (69%), interior currency absorption (68%), and outer payments (63%).”

In December, concern slope Citi said stablecoin adoption volition accelerate onchain activity, including successful decentralized concern (DeFi). 

The survey recovered that lone 24% of organization investors presently usage DeFi platforms, but that fig is expected to turn to astir 75% successful the adjacent 2 years. 

“Institutions are attracted to DeFi for myriad reasons, citing derivatives, staking, and lending arsenic the usage cases they are astir funny in, followed intimately by entree to altcoins, crossborder settlements, and output farming,” the study said.

Magazine: Bitcoin dominance volition autumn successful 2025: Benjamin Cowen, X Hall of Flame