69% Of Institutional Investors Plan To Boost Bitcoin And Crypto Investments, Says State Street

State Street, one of the largest banking institutions in the United States, has released a new report in which they disclose that institutional investors currently allocate over 20% of their total assets under management (AUM) to crypto assets, a figure expected to more than double in the next three ￰0￱ Crypto Exposure The latest edition of the State Street Digital Assets and Emerging Technology Study indicates that the average portfolio allocation to various digital assets stands at 7%. However, this is projected to rise to 16% within three ￰1￱ report highlights that “digital cash” and tokenized versions of listed equities or fixed income are the most prevalent forms of these investments, with respondents reporting an average allocation of 1% in each category.

Interestingly, asset managers show a greater inclination towards crypto assets compared to asset ￰2￱ instance, managers are twice as likely to hold 2-5% of their portfolios in Bitcoin (BTC)—14% of managers versus 7% of owners. Additionally, 5% of managers have 5% or more of their AUM in Bitcoin, compared to just 4% of ￰3￱ (ETH) also sees a similar trend, with six times as many managers holding 5% or more in Ethereum compared to their owner ￰4￱ report reveals that asset managers are leading the way in terms of exposure to tokenized ￰5￱ report a significant presence in the tokenization of public assets (6% versus 1% for owners) and private assets (5% versus 2%). 7% of managers have invested in digital cash, compared to only 2% of asset ￰6￱ year, the research did not specify percentage holdings but focused on whether respondents intended to increase their digital asset ￰7￱ that time, one-third of respondents (33%) planned to maintain their current holdings, while half (50%) aimed for increases within the following ￰8￱ ahead five years, 69% of respondents anticipated increasing their allocations, with 26% planning “significant” ￰9￱ consistency in intention suggests a steady trend toward greater digital asset ￰10￱ Favor Bitcoin Over Other Digital Assets Despite stablecoins and tokenized real-world assets (RWAs) forming the largest part of these allocations, crypto assets remain pivotal in generating ￰11￱ report notes that 27% of respondents believe Bitcoin currently delivers the highest returns among their digital asset portfolios, with a quarter expecting it to maintain this status over the next three ￰12￱ follows closely, with 21% stating it is their primary return ￰13￱ forward, the research reveals that most institutions expect crypto assets to become mainstream within the next decade.

However, respondents express caution regarding the pace of this ￰14￱ 2030, 52% anticipate that digital assets or tokenized instruments will make up between 10% and 24% of all investments, while only 1% predict that the majority of investments will be conducted this ￰15￱ the time of writing, the leading crypto, Bitcoin, is trading at $122,670. It is attempting to consolidate above the $120,000 mark, with the aim of establishing it as new support for further potential upward movements and new record ￰16￱ image from DALL-E, chart from ￰17￱