the crypto Market is rallying coins and tokens are hitting alltime highs your friends and family are asking you about crypto learn it's all cryptocurrency now you Dino and I now take cryptocurrency and everyone is watching videos like this it must mean the uh top is in right not even close and that's because the big money is just getting started according to a recent report almost 60% of institutional investors plan on ating more to crypto and that could mean billions of new inflows in 2025 today we're going to summarize this report reveal which cryptos institutional investors
are about to grab with both hands and tell you exactly what this could mean for the crypto Market don't go anywhere the report we'll be summarizing today is titled quote Future Finance report 2024 it's a survey of institutional investors that was recently conducted by sign a Swiss banking Group which is focused on crypto we'll leave a link to the full report in the description if you're interested now the report begins with a short message from Signum co-founder and CEO Matias imbach in it he reveals that increasing regulatory Clarity in the US has institutional investors spending
more time analyzing promising crypto projects in other words they're starting to pay closer attention to altcoins Matias also reveals the categories of altcoins institu investors are interested in Defi rwas and account abstraction of all three defi is arguably the most undervalued and that's just because it's been the most affected by regulatory uncertainty and now that regulatory Clarity is increasing defi will fly and by the way if you enjoying this video so far then be sure to karate chop that like button punch that subscribe and flick that notification Bell to make sure you don't miss the
next one anyway after that short message from Matias the reports authors briefly explain their methodology they reveal that they surveyed over 400 institutional investors from 27 countries respondents included Banks hedge funds family officers and asset managers basically as institutional as money can get next Signum head of research Lucas schwager provides a message of his own he reveals another category of altcoins that institutional investors are interested in and that's deepen in fact Lucas specifies that institutional investors are interested in crypto projects that interact with existing systems so uh take note after this short message from Lucas
the authors give more details about the institutions that responded in the survey as you can see they mostly come from Europe and East Asia which is not surprising given Signum location what is surprising though is that the Middle East and Oceana will also represented in the survey it's also important to point out that 61% of respondents were high net worth individuals not institutions per se it's also worth pointing out that 76% of respondents had high or very high knowledge of crypto and blockchain and this means that most of the survey respondents are essentially crypto natives
even so that doesn't change the fact that most of these investors have been actively investing large sums of capital in crypto and have plans to continue doing so naturally the biggest investors have been family officers hedge funds and asset managers with banks and the like being a bit more hesitant about allocating and this is where things get interesting 83% of respondents said they're currently investing in crypto and recall that only 76% of respondents said they had a high or very high knowledge of crypto this suggests that 6% of institutional investors are aping into crypto without
fully understanding it which is kind of crazy but of course this depends on what you mean by aping in a professional money managers don't go all in like we do allocations of a few percent to bitcoin are already considered to be a bold move by many and that's why the authors effectively Define apnn as holding more than 10% of their portfolio in crypto low and behold 53% of respondents hold more than 10% of their portfolios in crypto which makes them Deens by institutional standards at least what's Wild is that 133% of respondents noted holding more
than 50% of their portfolios in crypto the authors note that most of these degens are high net worth individuals this is significant as it suggests that crypto is a way of achieving a high net worth the caveat is that the sample is biased remember that 76% of respondents are essentially crypto natives obviously then chances are that most of the respondents made their money in crypto the devil really is in the detail folks that being said there's no denying that incredible wealth can be made in crypto even if you relatively new which begs the question of
how these institutional investors are actively allocating their Capital thankfully the report has the answer first the author note that 63% of respondents have a highrisk appetite higher risk higher reward go figure now for the fascinating part the actual cryptos these investors are buying as you can hopefully see 90% of respondents are investing in quote blockchain protocol tokens which can be simply understood as layer one coins BTC for Bitcoin eth for ethereum the coins that power actual blockchains the author's highlight the fact that institutional investors are primarily allocated to quote wellestablished layer ones specifically BTC and
eth however they note that these institutional investors have been gradually increasing their allocations to other established layer ones like salana and BNB the remaining allocations are where things get even more interesting 50% of institutional investors reported holding stable coins 40% had tokens belong into deps 39% hold nfts 11% hold privately issued tokens and 6% held tokenized assets H seems tokenized rwas aren't that big after all in any case unfortunately the authors don't specify exactly which stable coins stap tokens or nfts the institutional investors hold fortunately we can assume that the DAP tokens fall into the
categories revealed earlier to refresh your memory that's defy rw's account abstraction and deepen as for the stable coins we can assume that most institutional investors are probably using them to earn a yield by doing things like lending in defi the nfts though are where things get truly tricky which is annoying because it would be good to know which collections institutions find interest in given their allocations to this asset class it's actually insane that institutional invest investors hold regular tokens and nfts in equal proportions this suggests that we retail investors should watch nfts more closely because
chances are they're going to be a big narrative again the fact that nobody's paying attention to nfts makes them an asymmetric bet even more so than defi which I'll remind you has also been kind of off the radar alarm we regret to announce that the Bro crypto podcast is sponsored by the coin Bureau deals page this is the place where you can find the very best deals and Promos in the crypto space from massive trading fee discounts to insane sign up bonuses on some of the best crypto exchanges you'll also find crazy discounts on Hardware
wallets and you can sign up for our exclusive coin Bureau Club there too so check out out the coin Bureau deals page today otherwise you'll have to keep listening to these two idiots that's the problem a lot of crypto Bros have these days are inside too much comp inside add get some get some Vit D regardless the report goes on to answer four pressing questions why are institutional investors allocating to crypto what are their future plans for allocation why are they looking to increase their allocation and most importantly of all when are they planning on
increasing their crypto allocations let's start with the why 62% of respondents said they're allocating to crypto to get quote exposure to the crypto Mega Trend the authors explain that this means they're allocating because they believe that crypto's adoption and price will go up and to the right indefinitely underscoring a long-term view 52% of respondents are allocating to crypto to diversify 45% are using it as a hedge against macro conditions like money printing 38% are using it for yield and 36% are trading it short term it goes without saying that there's a bit of overlap with
these responses and it's safe to say that the point about institutional investors using stable coins to earn yield is likely accurate per the responses to that question and this ties into the when for starus 57% of institutional investors want to increase their allocations to crypto but you already know that if you've been paying attention and yes the main reason why institutional investors want to increase their crypto allocation is to increase their returns regarding timeline a staggering 79% of institutional investors plan on increasing their crypto allocations over the next year notably this figure includes institutional investors
that are looking to allocate for the first time even more more notably most institutional investors who aren't allocated will be in the next year news flash but this suggests that billions of dollars are likely to pour into not just BTC eth soul and BNB but defi rwa account abstraction cryptos deepen and apparently nfts and this is further confirmation of the fact that 2025 is going to be extremely bullish for crypto including altcoins say I didn't see meme coins in these Institutional Investor allocations did you in fact the word meme isn't even mentioned in the report
I thought altcoins were dead and we were getting a mcoin super cycle I mean that's what everyone's been saying on social media this is just so disappointing anyhow this is where things get interesting again and to their credit the authors asked institutional investors who aren't allocated or aren't increasing their allocation s why they're hesitant the answers are what you'd expect 53% said volatility 50% said a lack of trust 44% said security and custody concerns 42% said a lack of regulatory Clarity and 24% said a lack of regulated crypto entities the authors find a silver lining
in the fact that a lack of regulatory Clarity is no longer the number one reason it had been in previous surveys the catch is that volatility and Trust taking the top spot could have to do with events around the time the survey was taken something the authors do acknowledge but if volatility truly is the number one concern for institutional investors that's a problem because that's something that probably won't be addressed anytime soon in fact it's a bit of a paradox because crypto will become less volatile as it matures but that requires more investment from institutions
the silver lining in this context is that improved regulations will make it easier for institutional investors to invest but this won't happen until the infrastructure is there crypto custody and regulated crypto entities and this need presents a huge opportunity for those looking to start a new crypto project or crypto company not life advice now in the next part of the report the authors unpack the crypto investment strategies and crypto products and services that institutional investors use in terms of strategy 44% of institutional investors allocate to individual tokens and actively and passively manage their positions at
a similar rate when it comes to products and services 67% of institutional investors are interested in trading products 48% are interested in Asset Management products 43% are interested in custody products and 40% are interested in stake in products and this relates to what I said a few moments ago about new crypto Ventures whatever the case this is where things get fascinating again the authors found that only 23% of institutional investors are interested in Futures and options to put things into perspective 72% of institutional investors are interested in trading suggesting they might not be Deens after
all in all seriousness this just goes to show that smart money isn't gambling on AI mem coins with 100x leverage they're trading on the spot market and almost half of them seem to buy and hold rather than actively trade if this strategy is working for them it might work for us retail investors too not Financial advice but wait there's more the authors found that 72% of institutional investors are interested in direct crypto exposure compared to 47% who are interested in ETFs and etps again this could be a consequence of the cohort the report surveyed but
it nonetheless suggests that most investors prefer to own crypto directly this once again pertains to the opportunities available to those willing and able to create solutions to that end but I think I've made my point you'll make more money working in crypto than investing in it but if you'd rather invest I've got good news for you the authors provide some more details about the categories institutional investors are interested in although layer ones are the most popular by a wide margin institutional investors are also interested in web3 infrastructure such as account abstraction layer 2s defi layer
zero chains stable coins rwas metaverse cryptos web3 consumer daps and gamey better yet the authors finally drop a few names names besides BTC eth soul and BNB respondents noted being interested in Tron TRX and ton coins ton H this is peculiar but likely reflects the composition of the respondents in case you forgot many are based in Asia where Tron and ton coin are popular funnily enough the authors seem to FUD ethereum a little bit as they note that its layer 2 space is becoming diluted that's an understatement there are over 50 layer twos and Counting
according to al2 beat what's not so funny is that the author's note institutions aren't very bullish on gamey due to its limited adoption and the same is true for the metaverse but in that case it's understandable the real world is just so much cooler oddly enough the authors dedicate some extra space to discussing tokenized RW despite institutional investors only having about 6% allocation to rwas per their own findings and this might have something to do with the fact that most rwas are tokenized treasuries which are becoming less appealing as yields continue to fall the authors
asked institutional investors which assets they'd like to see tokenized and their top answers were the most obvious stocks bonds and mutual funds put differently institutional investors want to be able to trade other popular assets in the same way that they can trade crypto 24 s with lots of liquidity if you thought the answer was going to be real estate uh the authors do note that institutional investors did want to see tokenized real estate before but interest in tokenized real estate has kind of fallen off a cliff since then they note that this is because tokenizing
things like real estate is just too complicated right now now in the final part of the report the authors take a closer look at the actual opinions that institutional investors hold about crypto and this involved asking them a series of questions about specific crypto catalysts like the approval of spot Bitcoin ETFs in the US and how these are affecting their allocations to be honest most of these responses are no longer relevant as the landslide Victory by Republicans has practically guaranteed that good crypto regulations will be passed in the US next year heck the new US
president is literally launching his own defi protocol that's that's going to require good crypto regulations crypto regulations aren't just improving in the US either they've also been improving in places like Hong Kong and Dubai which are becoming the de facto capitals of crypto this is indeed something confirmed by The respondents Who note that crypto regulations have improved significantly everywhere since 2023 be that as it may the authors found that institutional investors are still cautious in the short term and this is due to a combination of crypto specific factors like BTC sales by large entities like
the German government NG GMI as well as macro factors such as a highly uncertain geopolitical environment as expected the authors found that institutional investors are feeling a lot more bullish about crypto in 2025 which is precisely when they plan on increasing their allocations as the saying goes though bull markets climb a wall of worry and I think we can all agree that there's been a big wall of worry lately on the flip side the fact that institutional investors are bullish on crypto in 2025 to the point that they'll be increasing their allocations suggests that the
crypto Market could start crashing sometime later next year as it so happens another survey found that crypto investors expect the market to top in the second half of next year I guess that means that crypto will top in the first half of 2025 hey I mean I don't make the rules and this brings me to the big question and that's what the findings of this survey mean for the crypto Market I revealed the answer earlier it suggests that billions of dollars could flow into the crypto Market mostly into layer 1es defi rwas nfts account abstraction
and a bit into other niches in case it wasn't clear enough all of these flows will come sometime in 2025 and will likely result in new all-time highs for most of the cryptos in these categories while the institutional investors that Signum surveyed aren't particularly bullish on cryptos in other niches it doesn't mean that they won't pump including mem coins on the contrary every crypto will pump even those that are known to be literal scams the only questions are how much they will pump when they will pump and what the risks are that last component is
something that institutional investors are hyperfocused on they love established cryptos as such it's likely when cryptos in other narratives like gamei start pumping institutional investors are going to flock mostly to the established Blue Chips and this is hard for us retail investors to wrap our heads around because we have a a habit of chasing every shiny new crypto that appears in each Niche not only that but lots of retail investors believe that allocating cryptos that have been around since the previous cycle is a bad strategy because they have lots of bag holders well Signum institutional
survey suggests the opposite cryptos with the longest track records are the most loved by investors and this makes perfect sense when you think about it even though cryptos from previous Cycles have bag holders The Only Ones Still Holding after the bare Market are True Believers in the project by contrast new cryptos have insiders who are itching to sell partially because they want to realize a profit and partially because they themselves probably don't know if crypto will actually survive long term so if you hold in older cryptos like eth and are looking at your portfolio wondering
if you should ape into the latest salana killer like everyone else rest assured that the Cavalry is coming and given how beaten down eth and its peers have been they could see the biggest gains in 2025 as a result take note and that's all for today's video if you found it informative be sure to smash that like button to let us know and if you want to stay informed well subscribe to the channel and ping the notification Bell as well and if you want to inform others about which cryptos institutional investors are buying then share
this video with them as always thank you very much for watching and I'll see you in the next one this is Nick signing off [Music]