In January of 2025, EY-Parthenon and Coinbase carried out a survey involving over 350 investors worldwide. The survey highlighted that regulatory clarity, considered the primary growth driver, will significantly impact the digital assets sector in 2025. Despite this, the survey revealed a strong interest and eagerness for novelty among institutional and retail investors. They are actively searching for innovative crypto-related products and services to generate returns, access credit and lending facilities, facilitate cross-border transactions, expedite transaction clearance, and build long-term wealth.
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In the process of evolving and finding its form, established financial institutions ( TradFi ) will make use of their years of expertise and standing to create secure, innovative investment options for their clients. A more favorable regulatory climate will empower tech-savvy innovators to move faster, driving the adoption of decentralized finance solutions by appealing to modern investors and a fresh wave of financial consumers.
Investors want more digital assets and more options
87% of surveyed investors intend to boost their crypto investments in total by 2025, encompassing various avenues like exchange-traded products (ETPs), digital asset firm investments, stablecoins, futures, and thematic mutual funds. Many favor investing in crypto through registered vehicles such as ETPs, but there’s also a growing interest in expanding custody services to directly own and hold spot cryptocurrencies. According to the survey, 55% already own spot cryptocurrency through ETPs, with 69% of those intending to acquire direct ownership using registered vehicles. In 2024, some Bitcoin ETPs experienced rapid growth, becoming the fastest-growing across a range of altcoins including Solana (SOL) and Ripple (XRP).
New innovation with stablecoins and tokenization
Investment institutions seek out chances to establish innovative payment systems and gain benefits through methods like staking and profit generation. An impressive 84% of polled investors either currently utilize or intend to employ stablecoins, with Tether (USDT) and USD Coin (USDC) being the most favored choices. Stablecoins offer the potential for immediate settlements, modernizing and lessening risk in foreign exchange, cash management, and numerous other applications.
Tokenization is set to empower individual investors by broadening their investment possibilities and serving as a fresh avenue for institutional funding. Over half of the surveyed investors are eager to invest in tokenized assets. The flexibility to spread investments more finely with fractional ownership and reduced minimums opens up more chances and enhances risk management. Among the top preferences for tokenization among investors are alternative asset classes like real estate, private equity, private credit, and even commodities such as gold and oil. Usually, these investments are limited to institutions or high-net-worth clients; however, through tokenization, they become accessible to a wider pool of retail investors.
As a researcher, I’ve consistently observed that innovation has been the catalyst propelling Wall Street forward. There’s a growing anticipation among investors that digital assets will not just become integral to everyday customer experiences but also present novel avenues for engagement within an expanding decentralized financial landscape. With a more favorable regulatory climate towards cryptocurrency in the U.S., there is widespread expectation that this will trigger the rapid development and introduction of fresh products and services, thereby sparking a digital asset renaissance on a global scale.
This article expresses opinions that belong to its author(s), which may not align with those held by Ernst & Young LLP or other entities within the global EY organization.
This article represents the personal opinions of the writer, which may differ from the views held by CoinDesk, Inc., its proprietors, and associated entities.
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2025-04-09 19:08