A Coinbase report reveals that the majority of institutions—83%—intend to increase their crypto investments in 2025.
The survey suggests that institutional investors could adopt DeFi platforms at a rate of 75% within two years.
With institutional investors becoming more optimistic about cryptocurrency, a March 18 report by Coinbase and EY-Parthenon states that 83% plan to raise their crypto exposure in 2025.
A substantial portion of surveyed firms—close to 75%—currently hold cryptocurrencies besides Bitcoin and Ether, while a majority plan to raise their crypto allocations to at least 5%, the report states.
They are motivated by the view that “cryptocurrencies represent the best opportunity to generate attractive risk-adjusted returns over the next three years,” according to the report.
Coinbase, the largest crypto exchange in the US, collaborated with EY-Parthenon to conduct the research, interviewing over 350 institutional investors in January.
The survey reveals that institutional investors favor XRP and Solana as their top altcoin choices.
If US regulators authorize the anticipated ETF listings this year, institutional investors could significantly increase their altcoin holdings.
The US Securities and Exchange Commission is currently reviewing more than a dozen altcoin ETF proposals as asset managers await approval.
Bloomberg Intelligence reports that XRP, SOL, and Litecoin stand among the altcoins most likely to secure approval soon.
On March 17, the Chicago Mercantile Exchange (CME) Group—the largest US derivatives exchange—launched SOL futures contracts, marking a significant step toward expanding institutional engagement with the altcoin.
The survey shows that 84% of institutions have either integrated stablecoins into their portfolios or are actively evaluating their potential use.
According to the report, institutions are using “stablecoins for a variety of use cases beyond just facilitating crypto transactions, including generating yield (73%), foreign exchange (69%), internal cash management (68%), and external payments (63%).”
In its December analysis, Citi projected that stablecoin growth would enhance on-chain participation, significantly impacting decentralized finance (DeFi).
Currently, only 24% of institutional investors interact with DeFi platforms, but the survey predicts that approximately 75% will do so in the next two years.
“Institutions are attracted to DeFi for myriad reasons, citing derivatives, staking, and lending as the use cases they are most interested in, followed closely by access to altcoins, crossborder settlements, and yield farming,” the report said.
With optimism about the crypto market in the U.S. growing, firms are increasingly looking to expand and enhance their offerings. Earlier in March, Coinbase CEO, Brian Armstrong, speaking after the White House Crypto Summit hosted by President DonaldTrump, revealed the exchange will expand its workforce by adding 1,000 new jobs in the U.S this year.
