Institutional investors increased their allocations during the Crypto winter, long-term price outlook is positive

A recent survey sponsored by Nasdaq-listed crypto-currency exchange Coinbase shows that institutional investors have increased their allocations during the crypto winter. The firm noted that there is “A strong signal of crypto’s acceptance as an asset class.” and that “the long-term price outlook remains positive.

Coinbase survey of institutional investors

Crypto-currency exchange Coinbase on Thursday released the results of a survey it commissioned to understand how decision makers at U.S. institutions view digital assets. The survey was independently conducted by Institutional Investor Custom Research Lab between Sept. 21 and Oct. 27.

A total of 140 U.S. institutional investors participated in the survey, representing approximately $2.6 trillion in assets under management. Coinbase did not participate in the search for respondents.

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Coinbase wrote:

Institutional investors have increased their allocations over the crypto winter, with many using this as an opportunity to learn and build for the future.

62% of investors who are currently invested in crypto have increased their allocations over the past 12 months (compared to 12% who have decreased their allocations). This shows that institutional investors have continued to take a long-term view of the asset class, even as prices have fallen“, the crypto firm detailed.

In addition, Coinbase shared:

58% of investors plan to increase their allocations over the next three years. A majority of investors (59%) currently use or plan to use a buy-and-hold approach.

Overall sentiment toward digital assets remained positive, with 72% supporting the idea that digital assets are here to stay (86% among those currently invested in crypto and 64% among those planning to invest)“, Coinbase continued, elaborating:

Given the current climate, this is a strong signal of crypto’s acceptance as an asset class.

While some investors classify digital assets as either real assets/commodities or alternative assets, more investors are creating their own category for crypto or classifying it as part of innovation or emerging technologies. This is also evidence of a long-term opportunity that could emerge in the future“, Coinbase further described.

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Despite the crypto winter, Coinbase said institutional investors are still bullish on crypto in the long term, saying:

The long-term price outlook remains positive, with 71% of investors saying they expect valuations of digital assets to rise over the long term.

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