A deep dive into product preferences

Investor insights: A deep dive into product preferences

Explore investors’ product preferences with insights from Sygnum’s institutional investor crypto survey report, Future Finance 23. From the popularity of direct token investments to the contrasting preferences of institutional investors and HNWIs, we uncover the dynamics shaping the crypto investment landscape.

Which products and services are of interest?

Which products and services are of interest?
  • The high interest in crypto trading (68 percent) reflects the strong focus on direct token investments, although this could be distinct to investor type. Custody services (64 percent) and staking (58 percent) indicate a strong priority for crypto asset security and earning passive income – the latter aligning with yield generation as a popular investment strategy.
  • Meanwhile, 42 percent show interest in asset management and investment research, indicating the demand for discretionary expertise and market analysis for investment decision-making.
  • The majority of respondents are interested in three or more services (73 percent). This indicates broad and active engagement of a diverse set of investor types, allocation sizes and mandates.
  • Lower current interest in tokenisation (39 percent) may be attributed to liquidity concerns in the current emerging market stage. Although lower in interest relative to other product types, it is still significant.

What crypto asset investment products are you most interested in?

What crypto asset
investment products are
you most interested in?
  • Direct token investments are the most preferred crypto investment product. This indicates a preference for custodised crypto asset ownership over indirect ownership.
  • Only 27 percent expressed interest exclusively in direct token investments, while 73 percent were interested in multiple investment products.
  • ETPs/ETFs ranked as the second most popular at 42 percent, largely due to their familiarity to traditional investors with onchain asset management being third (28 percent).
  • Despite passive products typically attracting far more AuM in crypto and TradFi, the strong interest in direct token investments in this research is likely because most survey respondents are already “crypto activated”.

Institutional vs. HNWIs investment product preferences

Institutional vs. HNWIs
investment product preferences
  • The data suggests a distinct split in product preferences between institutional investors and HNWIs. Institutions show a stronger inclination towards structured, professionally managed products, including ETPs/ ETFs, AMCs, index-linked certificates and mutual funds. By contrast, only 20 percent of HNWIs are interested in index-linked certificates, compared to 50 percent of institutional investors.
  • Direct token investments remain the top choice for all respondents, indicating a clear preference for investment via direct ownership of tokens and generating yields through staking. This preference might shift as financial products continue to evolve and diversify.
Thomas Eichenberger - Future Finance 2023q

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.

Investor qualification

The following content is available to qualified 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