Institutional Confidence in Crypto Assets Remains Strong Despite Market Volatility

According to Odaily, a recent study by Swiss crypto bank Sygnum reveals that institutional investors maintain confidence in crypto assets despite significant market corrections in October. Approximately 61% of institutions plan to increase their exposure to cryptocurrencies in the coming months, with 55% expressing a short-term bullish outlook. The report highlights that around 73% of institutions continue to allocate to crypto assets due to anticipated future returns, even as the market recovers from a $20 billion drop earlier in October. Lucas Schweiger, Sygnum's Head of Research, predicts that 2025 will be a year of 'risk convergence and strong demand,' with regulatory developments and ETF progress potentially serving as key catalysts. Currently, at least 16 crypto ETF applications are awaiting approval from the U.S. Securities and Exchange Commission, with the process delayed due to a government shutdown. Furthermore, over 80% of institutions express interest in crypto ETFs beyond BTC and ETH, with 70% indicating they would start or increase investments if ETFs offered staking yields. Sygnum suggests that staking ETFs could become the next institutional funding driver in the crypto market.