Positive long-term outlook: according to Binance, most institutional users support crypto assets.
Institutional investors are becoming increasingly interested in cryptocurrencies and digital assets. A Binance study reveals that 88% of institutional users have a positive outlook on crypto assets in the long term. The users surveyed see real use cases and regulatory clarity as a boost for the adoption of crypto assets.
The Institutional Crypto Asset Insights Survey of 208 Binance VIP and institutional users was conducted between March 31 and May 15, 2023. It explored the demographics of the respondents, as well as their attitudes, preferences, adoption and motivations towards cryptocurrency operations.
Despite the volatility, cryptocurrencies are increasingly valued by the big players in the market as an important part of their investment strategy for the future.
Institutional Users See a Bright Future for Crypto Assets
The recent survey report from Binance Research and Binance VIP & Institutional showed that 63.5% of surveyed Binance VIP and Institutional users have a positive outlook on crypto assets in the next 12 months.
Actually, 50% of the surveyed expect to increase their exposure to crypto assets in the next five years, while only 4.3% said they plan to decrease exposure. That indicates a lot of confidence and optimism about the future growth and mainstream adoption of cryptocurrencies.
In this regard, Catherine Chen, head of Binance VIP and Institutional, said that “Institutions usually have a long-term horizon when entering a new market, and our survey indicates that the same is true for crypto assets, taking into account the positive outlook. of respondents and how they express more trust in use cases as drivers of adoption than pricing.”
Key Findings from the Institutional Survey
Regarding institutional allocation, most institutional investors have maintained or increased their cryptocurrency portfolio, with only a minority cutting it, despite market events in the last year.
As of expected allocation changes, most respondents have plans to increase or maintain their institutional cryptocurrency portfolio in the next 12 months, while only a minority expect to reduce their exposure.
There is a more positive perception of Bitcoin. The perception of Bitcoin and cryptocurrencies in general has not changed in the last year, but more respondents have become positive about Bitcoin, as compared to the crypto sector in general. While a small percentage of investors feel negative towards Bitcoin, a larger proportion feel negative towards cryptocurrencies in general.
Binance Offers More Results
Infrastructure was identified as the most important sector by just over half of the investors surveyed, followed by layer 1 and 2 technologies. Regarding specific areas, innovation in Wallets was considered important by the majority of respondents.
Nearly half of investors consider the potential for large investment returns to be the most compelling argument for investing in cryptocurrencies. Followed by those whose primary motivation is long-term exposure to an emerging technology.
Centralized exchanges are the most popular platform for institutional trading and custodial activities. Liquidity, security and reputation are the three most important criteria that investors consider when choosing an exchange platform.
In conclusion, Binance indicated that the Institutional Survey of Crypto Asset Perspectives is not intended to be considered as a forecast or investment advice. Furthermore, it is not a recommendation, offer or request to buy or sell securities, cryptocurrencies, or to adopt any investment strategy. Investors are strongly encouraged to do their own research before making major financial decisions.
By Audy Castaneda
