74% of Institutional Investors Optimistic About Bitcoin’s Future, “Smart Money Has Already Moved”

▲ Bitcoin (BTC) / ChatGPT-generated image

Volatility in the global asset market is intensifying. However, large institutional investors are increasingly recognizing digital assets as systematically managed assets and attractive investment opportunities, showing a clear move to expand their long-term portfolio allocations.

Louis Raskin, host of the cryptocurrency-focused YouTube channel Coin Bureau, analyzed the shifting attitudes of 361 institutional investors in a video uploaded on March 29 (local time), citing a joint report by Coinbase and EY Parthenon. Raskin noted that institutions are viewing volatility not as a reason to exit the market but as an opportunity to establish disciplined investment strategies, and are beginning to accept digital assets not merely as speculative instruments but as regulated asset classes within the financial system. Among respondents, 74% were optimistic about price increases over the next 12 months, while 58% expected digital assets to deliver attractive risk-adjusted returns by 2026.

The preferred investment method among institutions is shifting from direct holdings to indirect investment through regulated financial products. Sixty-six percent of surveyed institutions said they favor spot Bitcoin (BTC) ETFs and exchange-traded products, while interest in thematic funds rose significantly from 25% last year to 39%. This indicates that capital flows are moving away from aggressive speculative strategies toward diversification and regulatory compliance.

Establishing clear market structure rules and strengthening security were identified as key challenges for further institutional adoption. Sixty-six percent of institutions expressed concerns about regulatory uncertainty, while worries over custody security doubled from 33% last year to 66%. Notably, 83% of respondents said that if the stablecoin regulation bill GENIUS is passed, more market participants are likely to enter the space, and 69% anticipated accelerated mainstream adoption of stablecoins.

Institutions are primarily building portfolios around Bitcoin and Ethereum (ETH), with intention to hold XRP rising from 18% to 25%, marking the largest increase among assets. When selecting partners, security and regulatory compliance are increasingly prioritized over cost. The proportion of institutions emphasizing cost in choosing custodial partners fell sharply to 7%, while 66% prioritized robust security protocols.

Tokenized real-world assets and stablecoins are expected to serve as major channels for institutional capital inflows. Among stablecoins known for payment efficiency, institutions showed a strong preference for the regulation-compliant USDC at 86%, surpassing USDT at 68%. The commitment of major institutions—often referred to as smart money—to investing in infrastructure and acquiring specialized talent, driven by confidence in the long-term value of blockchain technology, is proving to be a decisive factor in advancing the maturity of the digital asset market.

Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.