Major investors bullish on crypto growth amid regulatory shift and tokenisation progress

Three quarters of large investors expect cryptocurrency valuations to rise over the coming year as institutions steadily reshape how they engage with digital assets, according to a joint EY-Parthenon and Coinbase survey published on March 18.The research, which canvassed 351 institutional investors, finds growing conviction in crypto’s long-term potential alongside a marked shift toward regulated entry points, formalised risk controls and broader use of tokenisation and stablecoins.

The survey shows 74% of respondents anticipate higher crypto prices within 12 months and 73% plan to increase allocations to the asset class in 2026. At the same time nearly half of institutions told the researchers they are tightening up on risk management, liquidity practices and position sizing in response to market swings. According to EY, 94% of institutional investors express belief in the enduring value of digital assets and blockchain technology, and more than two-thirds already hold exposures to cryptocurrencies or related products.

Regulatory confidence and concern are simultaneously prominent themes. Two in three institutions that intend to boost crypto allocations cited clearer regulation as the principal impetus, yet a similar share named regulatory uncertainty as their greatest worry. When asked which areas most urgently need clarity, respondents prioritised market structure, licensing of digital-asset firms and tax treatment. Industry observers point to recent policy steps as material: the passage last year of the GENIUS Act to establish a federal stablecoin framework, fresh SEC guidance on tokenised securities and renewed interagency efforts through Project Crypto involving the SEC and CFTC.

This regulatory thread helps explain why registered vehicles are now the default gateway for many large investors. The EY-Parthenon and Coinbase study reports that two-thirds of respondents already hold spot crypto exchange-traded funds or exchange-traded products, and 81% favour accessing crypto via regulated instruments rather than direct holdings. That preference dovetails with market activity: Mastercard’s announced $1.8 billion acquisition of BVNK, a stablecoin infrastructure provider focused on cross-border payments and corporate transactions, underlines corporate interest in regulated stablecoin rails.

Stablecoins and tokenisation are moving from concept to practical use inside institutional workflows. The survey finds 86% of institutions are either using or exploring stablecoins for cash management and money movement, prompting many firms to adopt formal counterparty rules and demand reserve transparency so stablecoins conform with existing control frameworks. Appetite for tokenised assets has accelerated rapidly; EY data show the share of asset managers aiming to tokenise their own holdings climbed from 40% to 64% over the past year, while roughly three in five investors are prepared to deploy capital into tokenised products. A majority expects tokenisation to significantly affect trading, clearing and settlement within three to five years.

Market participants are already building infrastructure to meet that demand. Kraken’s collaboration with Nasdaq to develop tokenised equities through its xStocks initiative has reportedly processed more than $25 billion in transaction volume, signalling institutional-scale interest in digital representations of traditional securities.

Innovation beyond custody and trading is also a driver of institutional engagement. Separate analysis by Coinbase and EY-Parthenon highlights rising interest in decentralised finance, yield-generating products and crypto-enabled payment and lending services as sources of utility and potential returns. According to CoinDesk coverage of the survey, a substantial portion of institutional respondents plan meaningful allocations, many indicating intent to commit more than 5% of assets under management to digital assets in the near term.

Despite the bullish tilt, adoption hurdles remain. Institutions continue to seek trusted counterparties, auditable reserve practices for stablecoins and legal certainty around market structure and taxation. Those requirements help explain why the shift by large investors looks like a cautious broadening of engagement rather than an unrestrained sprint: firms are increasing exposure while embedding stricter governance and favouring regulated, transparent vehicles.

Taken together, the findings portray a sector in transition. Confidence in crypto’s prospects is rising among professional investors, yet that confidence is being channelled through tighter controls, regulated products and infrastructural changes aimed at aligning digital-asset operations with conventional institutional standards. If regulators and market infrastructure continue to evolve, the survey suggests, institutional participation in digital assets is likely to deepen and diversify over the coming years.