About 63.5% of institutional players who took part in a Binance survey held an optimistic perspective on the cryptocurrency sector.Of the 208 participants, who are either institutional clients or VIP users of Binance, 88% anticipate a bright future over the coming decade.
Dubbed the “Institutional Crypto Outlook Survey,” the report revealed that only 26.9% of the institutional users involved in the study believe that the wider adoption of cryptocurrencies will be propelled by an increase in practical real-world applications.
The study, conducted between March 31 and May 15, 2023, highlighted that 25.3% of the respondents regard regulatory transparency as a significant catalyst for the adoption of cryptocurrencies.
Participants also expect that the entrance of more financial entities, including crypto-supportive banks, into the space will be a major growth factor for the sector.
Other findings include:
- 47.1% of respondents chose to retain their cryptocurrency allocation over the previous year.
- 35.6% raised their allocation within the same duration.
- Half of the investors are set to augment their cryptocurrency allocation.
- A mere 4.3% plan to scale it down in the subsequent 12 months.
- 44.7%. of institutional investors leverage crypto for intraday trading strategies.
- Market-making and arbitrage rank as the second most prevalent utilization, with 23.1%.
- More than 50% of respondents managed less than $25 million in cryptocurrency.
- 22.6% of the participants had an allocation exceeding $100 million.
“Interestingly, for funds with an AUM above $75 million, portfolio diversification surfaced as an additional motivation to invest in cryptocurrencies,” the report stated.
Produced in association with Benzinga
Edited by Asad Ali and Saba Fatima