Clearer Regulations Identified as Main Growth Factor for Crypto, Per Coinbase & EYP Report

Regulatory Clarity Seen as Key Driver for Crypto Growth, Survey Finds

A new survey conducted by Coinbase (COIN) and EY-Parthenon (EYP) highlights that regulatory clarity is the most critical factor for the continued growth of the digital asset industry.

The study, which surveyed 352 institutional investors between January 13 and January 24, 2025, found that 86% of respondents already have or plan to gain exposure to cryptocurrencies this year. Additionally, 84% increased their crypto investments in 2024.

The survey revealed that 59% of institutional investors intend to allocate more than 5% of their total assets under management (AUM) to digital assets in 2025. Many cited policy changes under President Donald Trump’s administration as a major tailwind, given his commitment to making the U.S. the “crypto capital of the world.”

Altcoins are also gaining traction among institutions. 73% of respondents reported holdings in cryptocurrencies beyond bitcoin (BTC) and ether (ETH), with hedge funds leading adoption at 80% exposure to alternative tokens.

Additionally, half of the investors surveyed said they use stablecoins, primarily for yield generation, cross-border transactions, and foreign exchange. Meanwhile, 60% of respondents prefer investing in digital assets through regulated products like exchange-traded products (ETPs).

The survey gathered insights from institutional investors mainly in the U.S. and Europe, with additional global participation.