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October 12, 2025Crypto Potato logoCrypto Potato

State Street Study: Most Institutions Will Double Crypto Holdings Within 3 Years

Over the next three years, a majority of institutional investors plan to significantly increase digital asset allocations, and more than 50% expect tokenized assets to make up 10-24% of total investments by 2030, according to State Street’s 2025 Digital Assets and Emerging Technology ￰0￱ report, which surveyed senior executives across asset management and ownership firms, reveals that digital assets are steadily moving from experimental holdings to mainstream components of institutional ￰1￱ Portfolio Changes Currently, the average institutional portfolio allocates approximately 7% of assets to digital instruments, including cryptocurrencies, digital cash, and tokenized versions of listed equities or fixed ￰2￱ three years, target allocations are expected to reach 16%.

Digital cash and tokenized public and private securities are emerging as the most common forms of exposure, with respondents holding an average of 1% in each ￰3￱ managers, in particular, show deeper engagement with digital assets than asset ￰4￱ are twice as likely to hold 2-5% of their portfolios in Bitcoin, and slightly more likely to allocate 5% or ￰5￱ allocations among managers also outpace those of owners, with three times as many managers holding at least 5% of their ￰6￱ top that, 6% of asset managers report at least 5% of their portfolios in smaller cryptocurrencies, meme coins, and NFTs, compared with just 1% of asset owners, which indicates early experimentation with emerging digital ￰7￱ Boom Ahead Tokenization of real-world assets has also seen increased ￰8￱ report more exposure to tokenized public assets (6% versus 1%), private assets (5% versus 2%), and digital cash (7% versus 2%).

By 2030, over half of respondents expect between 10% and 24% of their total portfolios to be held in tokenized or digital assets, in a major strategic pivot toward blockchain-enabled instruments, although few anticipate that most investments will be fully ￰9￱ stablecoins and tokenized assets comprising the largest portion of allocations, cryptocurrencies continue to drive the bulk of ￰10￱ than a quarter of respondents cited Bitcoin as the top performer within their digital holdings, while Ethereum followed ￰11￱ public and private assets currently contribute less to returns, though their role is expected to grow gradually as markets ￰12￱ Street’s study also reveals a longer-term ￰13￱ found that private assets are seen as the likely first major beneficiary of broader tokenization, and most institutions foresee digital assets becoming a mainstream part of portfolios within the next ￰14￱ is growing, but institutions are careful and are focusing on strategy, efficiency, and compliance.

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