Sygnum Report Highlights Optimism Amid ETF Delays and Regulatory Uncertainty
Despite a sharp downturn in October that erased billions in market value, institutional confidence in digital assets remains resilient, according to a new report by Swiss crypto bank Sygnum.
The survey, covering 1,000 institutional investors globally, found that 61% plan to increase their cryptocurrency exposure, while 55% maintain a bullish short-term outlook heading into 2026. This optimism persists even as the industry continues to recover from the record $20 billion market crash seen early last month.
Institutions Look Beyond Volatility Toward Long-Term Growth
Sygnum’s report revealed that 73% of respondents invest in crypto due to expectations of higher future returns, underscoring that long-term conviction remains intact despite short-term uncertainty. The research also noted delays in major policy decisions — including the Market Structure Bill and the approval of altcoin ETFs — as current headwinds for institutional sentiment.
“The story of 2025 is one of measured risk, pending regulatory decisions and powerful demand catalysts against a backdrop of fiscal and geopolitical pressures,” said Lucas Schweiger, Sygnum’s lead crypto asset researcher. He added that discipline has tempered exuberance but not conviction in the market’s long-term trajectory.
Altcoin ETF Approvals Could Trigger Next Institutional Wave
The report highlighted that 16 crypto ETF applications remain pending approval in the United States, delayed by the prolonged government shutdown. Once resolved, “bulk approvals” could serve as the next major catalyst for institutional inflows, Sygnum noted.
Beyond Bitcoin and Ether, over 80% of surveyed institutions showed interest in staking-based crypto ETFs, with 70% indicating they would boost allocations if such products offered staking rewards.
Institutional Focus Shifts Toward Diversified Exposure
Schweiger said that as the digital asset market matures, institutions are broadening their focus beyond traditional cryptocurrencies, seeking diversification through tokenized assets and staking opportunities.
The report concludes that while regulatory clarity remains essential, institutional demand for digital assets is accelerating, setting the stage for a renewed cycle of adoption in 2026.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.