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Crypto Regulatory Clarity Top Catalyst for Industry Growth: Coinbase & EYP Survey

86% of institutional investors surveyed said they had exposure to digital assets or planned to make allocations to crypto in 2025.

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(Shutterstock)

What to know:

  • Crypto market regulatory clarity is the number one catalyst for industry growth, according to a survey by Coinbase and EY-Parthenon.
  • 86% of institutional investors said they had exposure to digital assets or planned to make allocations in 2025.
  • 59% of respondents said they planned to allocate more than 5% of their assets under management to crypto this year.

Crypto market regulatory clarity was cited as the top catalyst for growth in the digital asset industry, according to a survey by crypto exchange Coinbase (COIN) and consulting firm EY-Parthenon (EYP).

Coinbase and EY Parthenon surveyed 352 institutional investors between Jan. 13 and Jan. 24 this year.

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86% of those surveyed said they had exposure to digital assets or planned to make allocations in 2025, and 84% said they had increased allocations to crypto and crypto-related products in 2024.

59% of respondents said they planned to allocate more than 5% of their assets under management (AUM) to cryptocurrencies in 2025.

An improving regulatory backdrop under Donald Trump's new administration is viewed as a large tailwind for the digital asset industry. The President has promised to make the U.S. the "crypto capital of the world."

Altcoins are also becoming increasingly popular amongst institutional investors, according to the survey. 73% of respondents said they held tokens other than bitcoin (BTC) and ether (ETH), led by hedge funds at 80%.

About half of those surveyed said they leverage stablecoins, with yield generation, transactions, and foreign exchange cited as the main use cases.

60% of investors said they preferred to gain exposure to crypto via registered vehicles such as exchange-traded products (ETPs).

The survey focused on decision makers in the U.S. and Europe, with some participation from investors worldwide.

Read more: U.S. Crypto Investors Are Still Piling Into Memecoins Despite the Huge Risks: Kraken

Will Canny

Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He's now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL.

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