Portfolio diversification is now the leading driver for cryptocurrency investment in 2025, according to Sygnum Bank's newly released Future Finance Report 2025. The report, which surveyed over 1,000 institutional and professional investors across 43 countries, reveals a significant shift in investor motivations.
Diversification Takes the Lead
According to the report, 57% of respondents now view diversification as their primary motivation for investing in digital assets. This marks a change from previous years, where the pursuit of the "crypto megatrend" and short-term return potential were the dominant factors. In fact, exposure to crypto's long-term upside, which was the top driver last year, fell from 62% to 53%. Sygnum suggests that this shift indicates a maturing market where crypto is increasingly seen as a core portfolio component, with its diversification benefits taking precedence over purely chasing upside potential.
Several factors are contributing to this trend. The multi-dimensional nature and unique properties of crypto assets are enabling new, diversified models within multi-asset portfolios. The growing digital asset universe, including yield-generating DeFi and tokenized Real World Assets (RWAs), further enhances diversification potential, especially when supported by institutional-grade infrastructure.
Other Motivations
While diversification is the primary driver, other factors also play a significant role in crypto investment decisions. According to the report, 45% of respondents view crypto, particularly Bitcoin, as a safe-haven asset and macro hedge. This perspective is fueled by concerns over rising sovereign debt loads, inflation, geopolitical tensions, and a decline in trust in fiat currencies. However, interest in crypto as a "new alternative asset class" has decreased to 28%.
Market Maturation and ETF Demand
Sygnum's report also points to a maturing market environment, characterized by the adoption of regulated derivatives, corporate balance-sheet growth, and a surge in exchange-traded fund (ETF) products. There are currently over 150 crypto ETF applications pending in the US. Moreover, a significant 70% of surveyed investors stated they would increase their exposure to crypto ETFs if staking were permitted in future products, particularly those focused on Solana and multi-asset ETPs. This indicates a strong interest in yield-generating crypto assets.
High-Net-Worth Individuals
High-net-worth individuals (HNWI) represent the largest cohort in this year's survey, often allocating 10–20% or more of their investable wealth to cryptocurrency. An impressive 90% of these investors consider crypto to be important for long-term wealth preservation and legacy planning.
Barriers to Investment
Despite the growing interest in crypto, several barriers to investment remain. Regulatory uncertainty is the most significant obstacle, cited by 40% of respondents. Custody and security concerns (38%) and asset volatility (36%) also remain key challenges.
Overall Outlook
The Sygnum report suggests that institutional crypto investors are shifting their approach to digital assets, viewing them as strategic, long-term investments rather than purely speculative ventures. While optimism remains contingent on market catalysts, such as ETF approvals and regulatory developments, the underlying trend indicates a growing acceptance and integration of crypto into mainstream investment portfolios. Lucas Schweiger, Lead Crypto Asset Ecosystem Research at Sygnum, notes that digital assets and traditional finance are becoming increasingly intertwined, driven by legislation, regulated derivatives, and corporate demand.
