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A majority (95.7%) of the 208 institutional investors surveyed by Binance plan to increase or maintain their crypto allocations over the next 12 months, given the positive outlook for the industry. 63.5% of investors said they were positive about the future of cryptocurrencies during the same period.
Additionally, 50% of respondents plan to increase their digital asset holdings in the next 12 months. Furthermore, he expects 45.7% of investors to keep their allocations unchanged over the period. Only 4.3% of respondents expect to reduce their cryptocurrency allocation in the next year. investigation indicates
The bullish data contrasts with the turbulent past 12 months, when 17.3% of investors cut their crypto quotas following a string of high-profile bankruptcies last year. Nonetheless, institutional investor sentiment remained strong overall, with 47.1% of his investors and 35.6% of his investors maintaining and increasing their allocations respectively over the period.
Investors are more hopeful about the long-term prospects of cryptocurrencies. With the asset class expected to be regulated across major economies, 88% of investors said they were positive about the future of cryptocurrencies over the next decade. Only 2.4% of investors held a negative view of cryptocurrency prospects during this period, while 9.6% of respondents took a neutral stance.
Additionally, the survey shows that institutional investors’ perceptions of cryptocurrencies have changed little over the past 12 months. However, more and more investors are turning to Bitcoin. About 47.3% of investors have a strong opinion of Bitcoin compared to 33.2% a year ago.
According to Binances research,
“this [improvement in the perception of Bitcoin] It could be due to recent market trends, technological innovations in the Bitcoin ecosystem, or a strong belief in Bitcoin’s narrative as digital gold in an uncertain macro environment.
The majority of institutional investors (90.5%) use centralized exchanges (CEX) for trade execution, while only 5.2% say they use decentralized exchanges (DEX). When it comes to custody of assets, 58.2% of respondents preferred his CEX and 20.2% preferred institutional custodians.
Research shows that investors choose CEX primarily through liquidity, security and reputation-based evaluations.
Additionally, 42.8% of institutional investors cite potential return on investment as their primary motivation for investing in cryptocurrencies. Additionally, 37.5% said they are investing in cryptocurrencies to get exposure to emerging technologies.
Nearly 54% of respondents cite crypto infrastructure as the fund’s investment focus. Additionally, more than 40% of his investors are looking at Layer 1 or Layer 2 technology.
The survey shows that regulatory risk remains the area of greatest concern among investors. 29.7% of respondents were concerned about regulatory risk and 21.6% said they were concerned about counterparty risk. In addition, 15.7% of respondents said they had concerns related to custody risks.
Institutional investors believe that crypto adoption is driven by factors other than price volatility. More than 25% of his investors say the increase in real-world use cases and clarification of regulations are driving adoption.
Based on its own research, Binance invests in integrating other emerging technologies into its business in line with institutions’ preference for innovative technology and the use of centralized exchanges.
Binance is evolving into the future by integrating technologies such as machine learning (ML) and artificial intelligence (AI) to make the system faster and more secure, the company said in a shared document. crypto slate,
For example, Binance uses ML to Detect suspicious language in peer-to-peer communication. The exchange has also enhanced its user verification process by integrating AI to verify documents and videos during the Know Your Customer (KYC) process.
More importantly for investors, trading is now 5-50x faster on Binance, depending on which account the system handles. We have also increased the capacity of the futures matcher by 50% to improve trading throughput.
The document states that since the beginning of the year, the exchange has introduced 200 updates to improve the platform’s efficiency and usability.
