Institutional Investors Believe Real World Use Cases and Improvements In Regulatory Clarity Will Help Drive Adoption
DUBAI, UAE, June 30, 2023 /PRNewswire/ -- Binance Research and Binance VIP & Institutional today announced the findings of the Institutional Crypto Outlook Survey, which showed that 63.5% of Binance VIP and Institutional users ("Institutional Users") surveyed, had a positive outlook on crypto assets over the next 12 months. A vast majority (88%) of respondents expressed a positive sentiment on crypto assets for the next decade.
The survey also found that Institutional Users believe more real world use cases (26.9%) and improvements in regulatory clarity (25.3%) would drive adoption, over higher prices (3.4%). This can be indicative of institutional participation taking on a longer-time horizon and therefore less reactive towards short-term market cycles.
The global survey of 208 Binance VIP and Institutional users ran from 31st March to 15th May 2023, explored the respondents' demographics as well as their attitudes, preferences, adoption, and motivations towards cryptocurrency investments. Key findings include:
- Institutional Allocation: Despite the market events over the past year, the majority (47.1%) of investors had maintained their crypto allocation, and over a third (35.6%) increased their allocation in the same period. Only a minority (17.3%) decreased their crypto allocation.
- Expected Changes in Allocation: The majority of respondents expect to either increase (50.0%) or maintain (45.7%) their allocation over the next 12 months. Only 4.3% of investors indicated they would expect to reduce their exposure to crypto.
- More Positive Perception of Bitcoin: While perceptions of Bitcoin and crypto remained largely unchanged in the past year (47.8% and 44.7% respectively), a larger proportion of respondents have turned more positive on Bitcoin as compared to the broader crypto sector (47.3% vs. 33.2%). Similarly, while 22.1% of investors have turned more negative on crypto overall, 4.8% held that sentiment towards Bitcoin specifically.
- Infrastructure and Innovation: 53.9% of investors indicated infrastructure to be the most important sector for them or their fund. This was followed by Layer 1 and Layer 2 technologies (48.1% and 43.8% respectively). When asked about specific areas, just over half (51.0%) said Wallet Innovation (e.g. self-custody, UX/UI improvements) as being important.
- Investment Motivation: 42.8% of investors indicated that the potential for large investment returns made the most compelling case for investing in cryptocurrencies. This was followed by 37.5% of investors who believe in gaining long-term exposure to an emerging technology as the primary motivation.
- Trading Venues: Centralized Exchanges remain the most popular platform for institutional trading (90.5%) and custody activities (58.2%). Liquidity (28.0%), security (26.0%), and reputation (22.5%) were the top three criteria in determining how they select a trading platform.
"Institutions typically take a long-term horizon when they enter a new market, and our survey indicates that is likewise for crypto assets, considering the positive outlook from respondents and how they express more belief in use cases as adoption drivers over prices. These findings match the healthy rate of institutional account growth on Binance, which has increased 89% since the height of the bull market in Q4 2021. We will dive into the report with our users to apply learnings into our product offerings," said Catherine Chen, Head of Binance VIP and Institutional.
The survey report can be accessed here.
Binance is the world's leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. For more information, visit: https://www.binance.com
About Binance VIP & Institutional
Binance VIP and Institutional help institutions and sophisticated investors optimize their digital assets trading experience. We partner closely with hedge funds, asset managers, family offices, proprietary trading firms, market markets, brokers and more. Our global team of trusted experts provides industry-leading knowledge, personalized care, and VIP access to the largest and most liquid digital asset exchange.
About Binance Research
Binance Research is the research arm of Binance, the world's leading cryptocurrency exchange. The team is committed to delivering objective, independent, and comprehensive analysis and aims to be the thought leader in the crypto space. Our analysts publish insightful thought pieces regularly on topics related to, but not limited to, the crypto ecosystem, blockchain technologies, and the latest market themes.
The Institutional Crypto Outlook Survey is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities, cryptocurrencies, or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer, they may change as subsequent conditions vary. The information and opinions contained in the survey are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. The survey may contain 'forward-looking' information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in the survey is at the sole discretion of the reader. The survey is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies, or any investment strategy nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.