Despite the recent sharp decline in cryptocurrency prices, professional and affluent investors remain committed to increasing their crypto holdings. This sentiment is shared by analysts at Morgan Stanley and Sygnum Bank, who believe that crypto has evolved beyond being solely a speculative investment.
A survey conducted by Sygnum, a digital asset bank, revealed that a significant 61% of over 1,000 high-net-worth and professional investors across 43 countries plan to boost their cryptocurrency exposure. However, the survey also indicated a cautious approach, with investors uncertain about fourth-quarter allocations and a neutral to negative outlook for 2026.
Bitcoin, in particular, is viewed as a superior store of value compared to other altcoins due to its first-mover advantage and alleged safe-haven characteristics amidst concerns about inflation, de-dollarization, and sovereign debt.
Sygnum's survey further highlighted a trend towards active management strategies among investors, with a preference for direct token investments and an expectation of increased inflows into exchange-traded funds if staking is allowed.
The mainstream adoption of crypto was the subject of Morgan Stanley's recent podcast, where analysts Mike Cyprys and Denny Galindo discussed the "sea change" in investor sentiment. They attributed this shift to regulatory changes and new legislation, such as the Genius Act, introduced during the Trump administration.
Cyprys emphasized the role of exchange-traded funds in making crypto more accessible and easy to invest in, citing the Securities and Exchange Commission's generic template and process for listing requirements as a sign of crypto's mainstream acceptance. Galindo categorized potential investors into three groups: those who view bitcoin as digital gold, those who see it as a disruptive tech innovation, and those attracted to its decorrelation with other assets, making it an appealing portfolio diversifier.
Galindo also proposed a four-year cycle in crypto, often aligned with global trends in M2 money supply, suggesting that bitcoin may currently be in a dormant or consolidation phase.
This article was originally published by MarketWatch, an independent publication operated by Dow Jones & Co.
