Institutional interest in cryptocurrency has reached new heights. A recent survey by Sygnum Bank revealed that 57% of institutional investors and finance professionals plan to increase their exposure to crypto assets.

This enthusiasm reflects a substantial shift in how major players view the long-term value of digital assets.

Shifting Sentiments and Increased Allocations, Sygnum’s Findings

The survey represents insights from banks, hedge funds, multi-family offices, asset managers, and other investment-focused entities. It was conducted across 27 countries with over 400 respondents, with respondents averaging over a decade of experience.

Notably, about one-third (33.33%) of these participants are Sygnum clients. The findings highlight a rising appetite for high-risk investments in crypto and show growing confidence in the digital assets space.

Among the key takeaways is that nearly 65% of respondents maintain a bullish long-term view of crypto. Meanwhile, 63% plan to allocate more funds in the next three to six months. Additionally, 56% are expected to adopt a bullish stance within a year, potentially fueled by Bitcoin’s recent surge toward all-time highs (ATH).

More than half of the survey respondents already hold over 10% of their portfolios in crypto. Meanwhile, 46% plan to increase their allocations within six months, while 36% are waiting for optimal entry points. This commitment signals an enduring belief that digital assets can offer superior returns to traditional investments—a view shared by nearly 30% of survey respondents.

When it comes to investment strategy, single-token holdings are the most popular approach. Based on the research, 44% of participants opt to invest in individual tokens. Actively managed exposure, where portfolios are adjusted based on market performance, follows closely with a 40% preference.

This continued commitment to increasing crypto exposure, even amid market fluctuations, signals the growing perception of digital assets as a “megatrend” investment.

“This report tells the story of progress and calculated risk, the use of a diverse set of strategies to leverage opportunities, and most of all, the continued belief in the market’s long-term potential to reshape traditional financial markets,” said Lucas Schweiger, Sygnum’s Digital Asset Research Manager.

Strategic Approaches and Investment Trends

Layer-1(L1) blockchains, which serve as foundational platforms for building decentralized applications (dApps), rank as the top investment interest. Web3 infrastructure and decentralized finance (DeFi) ventures follow closely.

Interestingly, tokenized assets, including corporate bonds and mutual funds, have gained more traction than real estate investments, which led to 2023. This shift highlights how crypto adoption is influencing traditional sectors, offering new possibilities for asset tokenization.

Previously, regulatory uncertainty was seen as the biggest hurdle for institutional crypto investments. However, the survey highlights that 69% of respondents now see regulatory clarity improving, shifting concerns toward asset volatility and security. This indicates a maturing market where investors prioritize effective risk management over regulatory barriers.

The appetite for deeper insights into market-specific risks is evident. Up to 81% of participants stated that access to better information would encourage them to increase their allocations. This shift suggests that market intelligence, strategic planning, and technological research are critical factors for institutions venturing into the crypto playing field.

Institutional enthusiasm for crypto is part of a broader trend across the US. Digital assets are no longer just speculative plays for individual investors. As BeInCrypto reported, crypto is increasingly seen as a long-term investment opportunity rather than a gamble.

Furthermore, the introduction of Bitcoin ETFs (exchange-traded funds) has added credibility to crypto as an asset class. Political influences also play a significant role. President-elect Donald Trump’s recent win could bolster crypto’s status in the US, with some analysts believing that his pro-business stance may further enhance institutional involvement in the sector.

This could bring additional visibility to the industry and potentially lead to more favorable regulations that further incentivize long-term investments in digital assets. Nevertheless, some market observers are skeptical about the implication of the growing institutional adoption of crypto, with the likes of BlackRock and MicroStrategy progressively growing their Bitcoin portfolios.

“Does this not defeat the whole purpose of “decentralization”? BlackRock will be the biggest hodler, it doesn’t get much more centralized than that,” one X user noted.

The Sygnum survey echoes recent findings, where BeInCrypto reported that over 80% of crypto investors are optimistic about the future. Many believe the current bull market is poised to continue.

In a recent interview with Bloomberg, Galaxy CEO Mike Novogratz claimed that a US Bitcoin Reserve was unlikely to pass. Although he said such a law would push Bitcoin to $500,000, Novogratz believes that President Donald Trump will have insufficient Senate support.

Polymarket odds also rate the chance of passing as very low, but it only accepts bets on Trump accomplishing it very quickly after the inauguration.

The Bearish Argument for a Bitcoin Reserve

In a recent interview with Bloomberg, Galaxy CEO Mike Novogratz was pessimistic about the chances of a US Bitcoin Reserve. Although Novogratz has repeatedly spoken about his high hopes for friendly regulation, he didn’t see a clear pathway for this campaign promise. Simply put, there are too many hurdles between the federal government and regular Bitcoin purchases.

“It’s a low probability. While the Republicans control the Senate, they don’t have close to 60 seats. I think that it would be very smart for the United States to take the Bitcoin they have and maybe add some to it… I don’t necessarily think that the dollar needs anything to back it up,” Novogratz claimed.

To be clear, he also emphasized that such a Reserve would be beneficial for Bitcoin, predicting it would shoot the price to $500,000. However, Novogratz doesn’t think the existing support is enough.

Senator Cynthia Lummis got bipartisan support for her Bitcoin Reserve bill, and some state-level representatives also support the act. These vocal advocates, however, are few.

It’ll take more than a few elected officials to get such a sweeping policy over the finish line. For example, Novogratz also got into a recent social media spat with Senator Elizabeth Warren, the famed Bitcoin critic.

Although the anti-crypto faction in US legislature got substantially weaker in the last election, it isn’t defeated yet. Even Trump’s own party might not unite in support of the bill.

Polymarket odds, for their part, concur with Novogratz’s bearish predictions. This decentralized prediction market recently gained credibility after successfully forecasting Trump’s victory, and it claims the US Bitcoin Reserve only has a 33% chance of happening. Granted, the only active bet is whether Trump will fulfill his promise within the first 100 days, not his entire term.

Ultimately, there still is a decent chance that Trump will successfully pass a Bitcoin Reserve bill sometime in his four-year term. Lummis’ bill already has bipartisan support, and the US electorate is becoming more crypto-friendly.

Several Democrats may vote in favor, or the midterms could see new pro-crypto wins. Nonetheless, it might take a while.

Tesla, the electric vehicle giant, now holds Bitcoin worth over $1 billion, fueled by the current bull market. In February 2021, Tesla initially invested in Bitcoin, making headlines with one of the largest institutional buys in the cryptocurrency space.

Although the automaker sold part of its holdings, it retained a substantial stake in Bitcoin. Today, Tesla’s crypto investment has paid off, with a reported profit of $495 million.

Tesla’s Initial Move into Bitcoin

Tesla’s entry into the Bitcoin market, with the purchase of 43,200 Bitcoins, represented a bold step for corporate finance. In February 2021, the company announced its $1.5 billion Bitcoin purchase, aiming to diversify its cash holdings.

This move, aligned with CEO Elon Musk’s support for digital assets, sent Bitcoin’s price soaring. Together, Musk’s Tesla and Space X ventures hold a total of $1.73 billion in Bitcoin at the time of writing.

Following this initial purchase, Tesla sold part of its Bitcoin holdings, liquidating 10% of its holdings in May 2021. By July 2022, it was announced that they had sold more of their holdings, bringing the company’s total down to 10,725 BTC.

However, the company kept a significant portion of its holdings, showing long-term confidence in the asset. Today, this choice has proven highly profitable as Bitcoin’s value surges.

Bitcoin’s recent price rally, largely driven by increased institutional interest, has boosted corporate crypto holdings. With Bitcoin prices near all-time highs, Tesla’s remaining holdings also provide a hedge against inflation and economic uncertainty. This surge reinforces the value of corporate crypto investments in today’s economy.

Tesla’s Influence on the Broader Crypto Market

Tesla’s investment has strengthened its finances and influenced the broader crypto market. Many saw Tesla’s move as validation for corporate crypto adoption, encouraging other companies to explore similar strategies.

Additionally, Tesla’s involvement has increased public awareness and acceptance of Bitcoin. In the same year that the company made the purchase, it started accepting payment in BTC for its vehicles before suspending the option sometime later. This move has also positioned Tesla as a trendsetter, especially for companies eyeing the crypto market.

“Imagine if Tesla never stopped accepting Bitcoin as payment… they would’ve made BILLIONS on their Bitcoin holdings. One of the biggest mistakes in recent history,” commented one enthusiast on X.

Tesla’s Bitcoin profits highlight the value of digital assets in corporate finance. As Bitcoin’s role as a digital store of value grows, more companies may add crypto to their reserves. This recent Bitcoin bull run validates that strategy, especially for companies looking to protect against inflation.

Tesla’s decision strengthens Bitcoin’s case as a corporate asset, especially as more companies follow suit. Though the market remains volatile, Tesla’s continued holding of Bitcoin signals long-term confidence in the asset. With each new company investing in Bitcoin, corporate support may help sustain cryptocurrency’s momentum.