A recent survey conducted by Binance Research has revealed that institutional investors hold a positive outlook on the future of the cryptocurrency sector.
The report, titled “Institutional Crypto Outlook Survey,” gathered responses from 208 of Binance’s institutional clients and VIP users between March 31 and May 15, 2023.
The findings shed light on institutional sentiment towards crypto, including future projections, drivers of adoption, and investment strategies.
According to the survey, an impressive 63.5% of respondents expressed a positive outlook for the crypto sector in the next 12 months, while a remarkable 88% maintained a positive long-term view for the next decade.
It is noteworthy that these respondents are already active investors in the industry, indicating a strong sense of optimism among established institutional players.
However, the report highlighted an interesting paradox. Despite their positive sentiment, only 26.9% of institutional users believed that real-world use cases would be the primary driver of crypto adoption.
This suggests that other factors are perceived as more influential in driving the growth and acceptance of cryptocurrencies.
The survey identified regulatory clarity as a major driver of crypto adoption, with 25.3% of respondents emphasizing its importance.
Additionally, institutional involvement in the form of crypto-friendly banks and financial institutions entering the space was also considered a significant driver by the participants.
The report revealed that nearly half (47.1%) of institutional investors maintained their crypto allocations over the past year.
Furthermore, 35.6% increased their allocation during the same period, demonstrating a growing interest and commitment to the crypto market.
Looking ahead, 50% of investors expressed their intention to increase their allocation in the future, while only 4.3% planned to reduce their exposure to crypto in the next 12 months.
Among the surveyed investors, 44.7% utilized crypto for intraday trading strategies, while 23.1% focused on market-making and arbitrage activities.
Interestingly, the report highlighted that portfolio diversification emerged as an additional motivation for investing in cryptocurrencies, particularly for funds with assets under management (AUM) exceeding $75 million.