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How investors strategically shape their crypto portfolios

Future Finance survey report Research reports

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.

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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

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