• Binance Research and VIP & Institutional team surveyed 208 of their clients from March 31 to May 15, finding that 63.5% of respondents remain positive on crypto for the next year and 88% remain optimistic for the next decade.
• Despite negative market events in the past year, respondents maintained their crypto allocations with 47% keeping their allocation and more than a third increased their allocation.
• This optimism remains despite the regulatory crackdown against Binance and Coinbase from the U.S. Securities and Exchange Commission earlier this month and a continued bear market that started last year.
Binance Survey Reveals Institutional Clients Remain Optimistic on Crypto
Binance, the world’s largest cryptocurrency exchange by market value, conducted a survey between March and May 2023 to gain insight into institutional investors’ outlook on crypto. The survey included 208 institutional clients, 52% of whom had crypto assets under management (AUM) of less than $25 million, while 22.6% had AUM larger than $100 million.
Survey Results Show Positive Outlook
The results of the survey showed that 63.5% of respondents said they are positive on the outlook of crypto for the next year and 88% said they are optimistic for the next decade. Despite negative market events in the past year, respondents maintained or even increased their crypto allocations; 47% kept their current allocation while more than a third increased it over time, while only 4.3% expect to reduce allocation in the next 12 months.
Regulatory Crackdown Does Not Deter Optimism
This optimism remains despite several difficult developments throughout this year; most notably, a regulatory crackdown against Binance and Coinbase from the U.S Securities Exchange Commission earlier this month as well as continuing bear markets since last year’s bull run ended abruptly in late 2017/early 2018.
Reasons For Optimism
It is possible that institutional investors remain bullish despite these difficulties due to technological advancements such as DeFi protocols allowing people to access financial services without relying on traditional banking systems or high gas fees associated with Ethereum transactions making it difficult for users to make transactions quickly or cheaply enough to be practical for everyday use cases such as payments or trading activities.. Additionally, there may be an underlying belief that Bitcoin will reach its all-time highs again soon due its halving event scheduled for late 2020 which will reduce its inflation rate significantly which could lead to significant price appreciation if demand continues at its current level or increases further over time .
All in all , despite some challenging times faced by cryptocurrency markets this past few years , it appears that institutional investors still have faith in cryptocurrencies long term prospects . As technology continues advancing , regulations become clearer ,and blockchain use cases continue expanding ,it is likely that institutional investor sentiment will continue growing stronger towards cryptocurrencies .