- A new report found fund managers are open to altcoin exposure.
- Friendly US crypto policies are expected to drive adoption on Wall Street.
- Big-money players are seeking crypto staking and yield opportunities.
Emboldened by a pro-crypto administration in the US, investment managers are seeking to ramp up their exposure to crypto assets.
A new report from S&P Global’s financial analytics arm, Crisil Coalition Greenwich, reveals that the near-100% adoption of digital assets among fund managers is likely.
The predicted mass adoption isn’t limited to Bitcoin.
The report states that many firms are fine trading five crypto assets or fewer, but a “whopping” 40% of surveyed asset managers — many of whom oversee funds worth more than $100 million — are willing to trade 10 or more altcoins.
“This is a sea of change from years ago,” the report notes, acknowledging the increasing risk appetite for cryptocurrency investments among institutional players.
It’s another strong endorsement for crypto on Wall Street, as the report highlights that fund managers are moving beyond single crypto assets toward more sophisticated digital asset investment strategies.
Last year, the US Securities and Exchange Commission approved spot-traded Bitcoin exchange-traded funds. These Bitcoin ETFs raked in $107 billion in assets under management in one year ― a record for the ETF market.
Now, Coalition Greenwich predicts that multi-asset crypto ETFs, which will offer exposure to a basket of cryptocurrencies, are on the horizon.
The report finds that some fund managers are interested in direct exposure to underlying crypto assets, in addition to derivatives.
Bitcoin remains the major draw for these institutional investors, but the report indicates growing interest in DeFi tokens and other altcoins.
“This represents a growing shift from the last few years in which investors piled into the top three of four assets,” the report said. “Altcoins and expanding DeFi use cases will likely extend the utility of these tokens over time, making this rotation more permanent.”
Direct crypto ownership could bring big-money players into contact with native cryptocurrency staking and yield markets.
Ethereum’s staking market alone is worth $105 billion. Beyond native staking directly on the network, Ethereum’s staking market also includes liquid staking and restaking, which offer additional yield opportunities.
The Coalition Greenwich report states that 75% of surveyed asset managers want the ability to stake and earn yield from their direct exposure to crypto assets.
Still, regulatory clarity will determine the extent to which institutional investors can establish a significant presence in the market.
There are already encouraging signs.
US President Donald Trump has signed an executive order related to the crypto industry and established a committee to develop a regulatory framework for the market.
Additionally, the SEC has repealed SAB 121, removing an obstacle that previously prevented financial institutions from providing custody for crypto assets.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at osato@dlnews.com.
