Coinbase Institutional, in an X post, has informed the community that it has concluded interviews of institutional crypto investors. Their responses have shed light on several aspects of the crypto market. This includes, with no limitation whatsoever, volatility, allocation, and the usage of stablecoins.
Coinbase and EY-Parthenon
Coinbase, in association with EY-Parthenon, interviewed 350 institutional crypto investors. The objective was to cover their opinion on a variety of aspects of the crypto market. They went on to uncover insights into allocation intention and tokenization, along with other points.
Around 49% of the participants said that market volatility has urged them to rethink their approach to the market. They said that volatility has made them focus on risk management, liquidity, and position size.
In terms of allocation, the interview found out that 73% of them were aiming to increase digital asset allocation this year, with 1% planning to bring down their numbers. Almost 26% of the participants said that they would keep their allocations unchanged in 2026 – down from 33%.
More Outcomes by Coinbase Institutional
Coinbase Institutional has further explained in the X post that stablecoins are breaking new grounds. This is something that, per the post, goes beyond the trading arena. It concluded that 86% of investors were either using stablecoins or actively exploring them to move money. The perspective on money movement is accompanied by internal cash management.
A significant number of investors pointed out that 24/7 trading was an advantage of using stablecoins.
That said, the stablecoin sector is seeing a growing competition between DAI and USD1 in terms of market cap. USD1 has retracted as of now but holds a broad gap over PYUSD. USDT and USDC are at the top two positions, in the same order, on the list.
Investors’ Concluding Remarks
The last few remarks from investors are directed towards tokenization and regulation. Tokenization is expected to transform the market in the next 3-5 years, a tentative timeline. The highly affected areas could be trading, clearing, and settlement. Almost 61% of the investors tabled this opinion.
Regulation has got two different theories – it has been tagged as an accelerator and a roadblock. The favorable opinion is that regulations fuel adoption. The opposing argument is that the community still needs regulatory clarity.
Market Structure, chosen by 78% of the participants, is followed by licensing and tax treatment with 56% and 54% of the selection, respectively.
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