Institutional Investors Set to Boost Crypto Allocations in 2025, According to Coinbase

A recent report from Coinbase and EY-Parthenon, published on March 18, reveals that institutional interest in cryptocurrency is on the rise.

A significant 83% of institutional investors are planning to increase their crypto allocations in 2025. The survey, conducted with over 350 institutional investors in January, shows that nearly 75% of these firms already hold cryptocurrencies beyond Bitcoin and Ethereum, with many expecting their crypto portfolio allocations to exceed 5%.

The growing enthusiasm is driven by the belief that cryptocurrencies offer compelling risk-adjusted returns in the next few years. Among altcoins, XRP and Solana have emerged as the most popular choices, reflecting the broader trend of institutional interest in assets beyond the leading cryptocurrencies.

Additionally, the potential approval of altcoin exchange-traded funds (ETFs) is expected to further fuel institutional adoption. Several altcoins, including Litecoin, Solana, and XRP, are seen as prime candidates for approval by the U.S. Securities and Exchange Commission (SEC). On March 17, the CME Group introduced futures contracts linked to Solana, underscoring the altcoin’s growing institutional appeal.

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Stablecoins also continue to gain traction, with 84% of respondents either holding or considering them. Their usage extends beyond simple transactions, as institutions are leveraging stablecoins for yield generation, foreign exchange, and even cash management.

Moreover, decentralized finance (DeFi) is quickly catching the attention of institutional investors, with projections indicating that nearly 75% will engage with DeFi platforms within the next two years, driven by interest in derivatives, lending, and cross-border transactions.

Alexander Stefanov