High-net-worth investors are increasingly confident in crypto’s long-term potential, with 57% planning to boost exposure, survey shows.
High-net-worth investors are increasingly confident in cryptocurrencies’ long-term potential. A recent survey by Swiss digital bank Sygnum, conducted among over 400 respondents from 27 countries, reveals growing optimism about digital assets.
According to the survey, 57% of institutional and professional funds plan to raise their crypto exposure. This is a clear indication of increased optimism about the asset class as investors embrace higher leverage. Most of these investors are ready to take larger risks since they are diversifying their investments. This has been the case even though earlier, the market was characterized by a lot of fluctuation in the prices of cryptocurrencies.
Regarding crypto’s future, however, 65% of participants still believe in the idea. Additionally, 63% of investors plan to invest more in the next three to six months. This is a sign that people are now looking for long-term investment stocks, not just the quick-earning stocks that characterized the earlier months of the year. Additionally, 56% expect to become bullish soon, some of which have changed as Bitcoin surges to a record high.
30% of Investors See Crypto as Better Than Traditional Assets
The rationale for these investment decisions is believed to be the digital asset megatrend exposure. According to the survey, almost 30% of investors believe cryptocurrencies are far better investments than conventional financial instruments. This trend indicates a new awareness of what cryptocurrencies can do on the planet’s monetary landscape.
However, it is quite surprising that regulatory doubt, which used to be a substantial disadvantage regarding crypto investments, is not a crucial factor anymore. However, market risk and risks associated with the safety of valuable assets are at the forefront. This new development suggests that the individuals investing in this market are gradually becoming more comfortable with cryptocurrency volatility and are more interested in the long-term performance of digital assets.
The respondents work in banks, hedge funds, family offices, asset management firms, and the DLT Foundation. One-third are Sygnum clients, suggesting that their investments span different financial market sectors.
Lucas Schweiger, Sygnum Digital Asset Research Manager, noted the report shows the development and measured risks in the crypto sphere. It reflects increased optimism regarding the more extended possibilities of digital assets. The study implies that institutional investors have begun including crypto assets in their plans. The focus is shifting towards long-term growth, indicating a broader acceptance of crypto as a key asset class in traditional finance.
