Crypto Biz: Institutions aren’t waiting for the bottom

Nearly three-quarters of institutional investors plan to increase their digital asset allocations this year, with Bitcoin, Ether, stablecoins and tokenized assets seeing the most interest.

Institutional demand for crypto is holding up despite ongoing turbulence, with new data showing large investors are preparing to increase allocations even after the market’s sharp sell-off since October.

At the same time, stablecoins are gaining traction across both retail and institutional channels. Japan is moving ahead with regulated USDC (USDC) lending products, while new models tied to real-world assets are beginning to take shape.

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Elsewhere, crypto companies continue to tap traditional capital markets, with Abra pursuing a public listing via a special purpose acquisition company (SPAC) deal.

Together, the latest developments point to a market that is still expanding through regulated pathways, even as price volatility and regulatory uncertainty persist.

Institutional investors double down on crypto

Despite recent volatility and a 40% crypto market sell-off since October, institutional investors are preparing to increase their digital asset exposure, with most expecting prices to rise over the next 12 months. 

A January survey of 351 investors by Coinbase and EY-Parthenon found that 73% plan to buy more digital assets this year, while 74% expect prices to move higher.

Bitcoin (BTC) and Ether (ETH) remain the primary entry points, but interest is expanding into stablecoins and tokenized assets. Two-thirds of respondents said they prefer gaining exposure through regulated vehicles such as exchange-traded products.

The data points to steady institutional demand, with capital continuing to move through structured, compliant channels despite market turbulence.