Notably, nearly three-quarters of respondents intend to increase digital asset allocations in 2026, while expectations for market performance remain strong. The report states:
“73% of respondents intend to increase their digital asset allocations in 2026, driven by greater regulatory clarity, expanded availability of regulated products and improved infrastructure.”
Regulation and Infrastructure Drive Next Phase of GrowthAround 65% of investors planning to raise exposure identified clearer rules as a primary catalyst, yet 66% simultaneously cited regulatory uncertainty as a leading concern. Market structure ranked as the top area requiring clarity, cited by 78% of participants, while tokenized assets face similar constraints tied to unclear rules.
Institutional positioning reflects a broader structural shift in how digital assets are integrated into portfolios. Coinbase and EY Parthenon described a transition away from speculative drivers toward disciplined execution, where regulated access and operational controls define participation. This phase aligns with a new cycle of inflows supported by institutional-grade infrastructure rather than earlier reliance on retail-driven momentum.
Globally, regulatory divergence continues to influence adoption patterns and capital flows. While clearer frameworks in jurisdictions such as Europe and parts of Asia attract participation through defined licensing and compliance standards, uncertainty in other markets remains a constraint. This divergence reinforces the role of policy consistency in determining how quickly institutional capital scales within digital asset markets.
“Tokenization is expected to begin meaningfully impacting trading, clearing, and settlement.”
FAQ 🧭 Why are institutions increasing crypto allocations now? Greater regulatory clarity and improved infrastructure are driving increased institutional exposure. What risks are institutions most focused on in crypto markets? Investors are prioritizing risk management, liquidity, and position sizing amid volatility. How are institutions gaining exposure to digital assets? Most prefer regulated vehicles such as spot crypto ETFs and ETPs for safer access. What role does regulation play in crypto market growth? Policy clarity remains the key factor determining institutional capital inflows and scaling.
