Our research indicates

How investors strategically shape their crypto portfolios

Sygnum’s institutional investor crypto survey report, Future Finance 23, confirms a strong preference for well-established crypto assets which are perceived as less volatile. In this excerpt of the report, we focus on preferred crypto assets and investment strategies.

What type of crypto assets do you currently invest in?

What type of crypto assets
  • 87 percent of respondents invest in blockchain protocol tokens like Bitcoin, Ethereum and Solana (Layer 1 protocols). This reflects a strong preference for well-established crypto assets which are perceived to be less volatile. This also signals a strong interest in smart contract platforms which form the infrastructure for blockchain-based ecosystems and applications.
  • This research indicates the use of a diverse range of portfolio compositions and investment strategies. For example, more than half invest in decentralised application (dApp) tokens, over a third in stablecoins and a quarter in NFTs. Additionally, only 20 percent of respondents invest solely in blockchain protocol tokens.
  • The dominance of protocol tokens, and to a lesser extent dApp tokens, is driven by their name recognition, accessibility and yield opportunities such as staking on Proof of Stake (PoS) chains.
  • Stablecoins remain relatively popular (36 percent) due to their non-volatility and use as a hedge and an on-and-off ramp.
  • Tokenised assets and private company-issued tokens reflect low current liquidity but could potentially increase as the number of use-cases and issuances grows.

What percentage of your portfolio is currently allocated to crypto assets?

What percentage of your portfolio is currently allocated to crypto assets

Crypto allocation percentages vary significantly based on two factors: investor type and portfolio compositions. Institutional investors have more conservative holdings in contrast to High Net Worth Individuals (HNWI) or Distributed Ledger Technology (DLT) and crypto foundations.

What best describes your crypto asset investment strategy?

What best describes your crypto asset investment strategy?
  • Single token exposure (43 percent) is the most preferred investment strategy. This indicates a strong conviction in the potential to generate alpha from specific tokens, likely driven by the established market presence of major assets such as Bitcoin and Ethereum.
  • Actively managed exposure (30 percent) may provide more market flexibility and outperformance potential, while yield generation (30 percent) shows interest in passive income streams for those putting large amounts of idle capital to work via staking and structured products.
  • However, the data suggests a relatively diverse spread of strategies, that includes passive market exposure (23 percent), sector exposure (19 percent) and venture capital (19 percent). These strategies could be employed by distinct investor types with different meta allocation amounts, hence warranting further analysis.
How investors strategically shape their crypto portfolios

Disclaimer

This document is purely for educational purposes and has been issued by Sygnum Bank AG. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Bank AG, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalised investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Bank AG uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.

Read next article

Local restrictions – Provision of cross-border services

It looks like you are using a computer with an IP address located outside of Switzerland.
If you are located in Switzerland, please click “Continue” to access the Sygnum Bank AG (Sygnum) website.

If you are not located in Switzerland, please read below.

This website and the information contained herein are addressed solely to persons residing or domiciled in Switzerland.

Sygnum is a regulated bank supervised by the Swiss Market Financial Authority (FINMA). The products and services on this website are authorised in Switzerland. Sygnum cannot promote its products and services in other countries where it is not authorised by the supervisory authority of that country to do so.

If you click on “Continue” to visit this website, you confirm that you have read and understood the above and you are visiting this website on your own initiative without any active promotion or solicitation from Sygnum.

CONTINUE

Investor qualification

The following content is available to professional and private qualified Swiss investors. Please confirm your details below to visit this page, or please see our other digital asset updates here.

Security alert

Stay alert to fraudulent communications. Sygnum will never post messages on social media or private messaging applications regarding e-banking access or logins. If you have concerns, contact us.

Close