Binance Study: 88% of Institutional Users See Long-Term Positive Outlook for Cryptocurrencies

Binance Research and Binance VIP & Institutional announced today the findings of the Institutional Crypto Outlook survey, which revealed that 63.5% of VIP and institutional users of Binance have a positive outlook on crypto assets in the next 12 months. A significant majority, 88% of respondents, expressed positive sentiment towards crypto assets for the next decade.

The survey also found that institutional users believe that real-world use cases (26.9%) and improved regulatory clarity (25.3%) would accelerate adoption, rather than higher prices (3.4%). This suggests that institutional involvement has a longer time horizon and is less reactive to short-term market cycles.

The global survey of 208 Binance VIP and institutional users was conducted from March 31 to May 15, 2023. It explored the respondents’ demographic data, as well as their attitudes, preferences, adoption, and motivations regarding cryptocurrency investments. Key findings include:

Institutional Allocation: Despite market events in the past year, the majority (47.1%) of investors maintain their crypto allocation, and over a third (35.6%) are increasing their allocation during the same period. Only a minority (17.3%) have reduced their crypto allocation.

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Expected Allocation Changes: The majority of respondents expect to either increase (50.0%) or maintain (45.7%) their allocation in the next 12 months. Only 4.3% of investors indicated that they would decrease their exposure to crypto.

Improved Perception of Bitcoin: While perceptions of Bitcoin and crypto have largely remained unchanged in the past year (44.7% and 47.8% respectively), a higher proportion of respondents have become more open to Bitcoin compared to the overall crypto sector (47.3% versus 33.2%). Similarly, while 22.1% of investors have become more skeptical about crypto in general, only 4.8% held that sentiment specifically towards Bitcoin.

Infrastructure and Innovation: 53.9% of investors indicated that infrastructure is the most important sector for them or their fund. This was followed by Layer 1 and Layer 2 technologies (48.1% and 43.8% respectively). When asked about specific areas, slightly over half (51.0%) stated that wallet innovation (e.g., self-custody, UX/UI improvements) is important.

Investment Motivations: 42.8% of investors indicated that the potential for high returns was the most convincing argument for entering cryptocurrencies. This was followed by 37.5% of investors who believed in gaining long-term exposure to an emerging technology as the primary motivation.

Trading Venues: Centralized exchanges remain the most popular platform for institutional trading (90.5%) and custody activities (58.2%). Liquidity (28.0%), security (26.0%), and reputation (22.5%) were the top three criteria in selecting a trading platform.

“Institutional investors typically have a long-term horizon when entering a new market, and our survey indicates the same for crypto assets, given the respondents’ positive outlook and their greater confidence in use cases as adoption drivers compared to prices. These findings align with the healthy growth rate of institutional accounts on Binance, which has advanced by 89% since the peak of the bull market in Q4 2021. We will examine the report alongside our users to apply the insights to our product offerings,” said Catherine Chen, Head of Binance VIP and Institutional.