Industry research reveals new trends in institutional capital

The institutional investor research report jointly released by Ernst&Young Parthenon and Coinbase outlines the development landscape of the digital asset field. This study, covering over 350 investment entities including global asset management institutions, family offices, and hedge funds, shows that the 2024 US election may be a key turning point for the integration of cryptocurrency into the mainstream financial system.

Regulatory disruption stimulates market vitality

After experiencing a period of strengthened law enforcement and industry pains, market participants have shown strong resilience: 60% of respondents predict that the election will stimulate enthusiasm for institutional allocation, and 83% of institutions have clear plans to increase their digital asset positions in the next 12 months. This optimism stems from the expectation of a sound regulatory framework - over 70% of institutions view policy clarity as the primary growth engine for the industry. It is worth noting that although the abolition of SAB 121 rules brings short-term benefits, investors are more concerned about the regulatory plan to be introduced by the Presidential Working Group, especially core issues such as the definition of commodity securities and tax rules.

The trend of diversified investment tools is emerging

Data shows that 55% of current holders allocate encrypted assets through ETP, and 69% of planned market participants tend to choose this channel. At the same time, half of the institutions have begun to explore indirect investment methods such as stocks and venture capital funds, demonstrating the diverse evolution of allocation strategies.

Continuous expansion of innovative application scenarios

At the specific application level, there are three major trends:

1. The penetration rate of decentralized finance (DeFi) has significantly participanted of institutions already engaged in related businesses and 50% of non-participants planning to expand within two years. Derivative trading (40%) and pledge services (38%) have become the main entry points;

2. The application scenarios have deepened, with 84% of respondents deploying or paying attention to this field, 73% of institutions valuing their ability to generate revenue, and 71% valuing transaction convenience;

3. Asset opens up a new blue ocean, with 57% of investors planning to allocate assets, of which 47% focus on the alternative fund sector and 65% aim for portfolio diversification.

Strategic choices under market pattern differentiation

Traditional financial institutions and native enterprises present differentiated development paths:

-Native institutions focus on strengthening infrastructure, with a particular emphasis on enhancing the stability and compliance capabilities of trading systems, and consolidating their first mover advantage through product innovation;

-Traditional finance relies on existing service systems and accelerates business integration through regulatory loosening opportunities (such as SAB 121 revision). 91% of global asset management giants are developing systematic digital asset strategies.

Industry Outlook

With the gradual clarification of regulatory frameworks, encrypted assets are undergoing a transformation from the edge to the surveyed institutions predict that this field will generate excess returns to the next three years. In breakthrough applications such as cross-border payments (78%) and supply chain finance (65%), which may reconstruct the global financial infrastructure. Driven by both policy dividends and technological innovation, 2025 is expected to become a milestone year for institutional capital to enter the market on a large scale.

（Writer：Tick）