Institutional investors remain confident in digital assets despite October’s sharp market downturn, with a majority planning to increase their crypto exposure in the coming months, according to a new report from Swiss crypto bank Sygnum released on Tuesday.
The survey, which polled 1,000 institutional investors worldwide, found that 61% intend to boost their cryptocurrency holdings, while 55% maintain a bullish short-term outlook on the market.
Around 73% of respondents said they are investing in crypto in anticipation of higher long-term returns, even as the sector continues to recover from the $20 billion market crash that occurred at the start of October.
Still, sentiment remains tempered by uncertainty, as investors await progress on major market catalysts — including the U.S. Crypto Market Structure Bill and potential approval of new altcoin exchange-traded funds (ETFs).
While some of this uncertainty may extend into 2026, Lucas Schweiger, Sygnum’s lead researcher for the crypto asset ecosystem, expects the market to continue maturing, with institutions pursuing diversified exposure and maintaining long-term growth ambitions.
“The story of 2025 is one of measured risk — shaped by pending regulatory decisions and strong demand catalysts, all unfolding against a backdrop of fiscal and geopolitical pressures,” he said, adding:
“But investors are now better informed. Discipline has tempered exuberance, but not conviction, in the market’s long-term growth trajectory.”
Despite the October correction, institutional participation and what Sygnum’s Lucas Schweiger called “powerful demand catalysts” remained at record highs, with a surge in ETF applications underscoring growing institutional interest.
Currently, 16 crypto ETF applications are awaiting approval, their progress stalled by the ongoing U.S. government shutdown, now in its 40th day.
Crypto staking ETFs may be the next major catalyst
According to Sygnum, crypto staking ETFs could represent the next key driver of institutional demand. Over 80% of surveyed institutions said they were interested in ETFs that go beyond Bitcoin and Ether, while 70% indicated they would start or increase investments if such products offered staking rewards.
Staking involves locking tokens within a proof-of-stake (PoS) blockchain to help secure the network and earn passive income in return.
Meanwhile, with the government shutdown nearing an end, investors are anticipating a potential wave of “bulk approvals” for altcoin ETFs from the U.S. Securities and Exchange Commission (SEC) — a development Sygnum says could trigger the next wave of institutional inflows into crypto markets.
