Institutions stay bullish on crypto into Q4 but brace for 2026 downturn: Sygnum

Institutional investors are leaning into cryptocurrency allocations through the end of the year — but few expect the rally to last heading into 2026, according to a Sygnum Bank's report. 

Sygnum Bank's Future Finance 2025 Report found that 61% of respondents plan to increase digital asset investments, while 38% aim to add exposure in the fourth quarter of this year. Sygnum's analysts stated that diversification has overtaken the "megatrend narrative" as the main reason to invest in crypto, signaling a shift from speculative trade to a recognized portfolio component.

"Institutions are thinking less about crypto as defense and more about participation in the structural evolution of global finance," said Lucas Schweiger, the report's lead author. 

The report surveyed more than 1,000 professional and high-net-worth investors across 43 countries, the bank said.

Founded in Switzerland and Singapore, Sygnum Bank provides crypto custody, trading, asset-management, and tokenization services to institutional clients and operates under banking and payment licenses across Europe, the Middle East, and Asia.

Active strategies lead as ETFs, tokenization gain ground

Actively managed strategies now dominate institutional approaches at 42%, followed by index exposure at 39%, edging out single-token bets, according to the bank. Sygnum argued that the change suggests investors prefer discretionary mandates that can adjust to policy changes and market volatility.

Interest in crypto ETFs beyond bitcoin and ether has also surged. More than 80% of respondents said they want broader ETF exposure, and 70% would increase allocations if staking were enabled, with demand strongest for Solana and multi-asset products. As The Block reported, U.S. spot SOL ETFs have drawn inflows for 10 consecutive days and logged over $200 million in net inflows during their first week.

Tokenized real-world assets are also climbing up the priority list, with investor interest jumping from 6% to 26% year-over-year, highlighting growing confidence in regulated onchain products like tokenized bonds and funds.

Cautious optimism beyond 2025

Still, sentiment flips to neutral or bearish beyond year-end, with investors indicating caution toward 2026. Sygnum described 2025 as a year of "measured risk and powerful demand catalysts," but one tempered by regulatory uncertainty and slowing liquidity.

While most investors remain confident in crypto's long-term role, many expect momentum to cool by mid-2026 as rate cuts plateau and macro tailwinds fade.

Nevertheless, 91% of high-net-worth respondents viewed crypto as key for long-term wealth preservation. Also, 81% saw bitcoin as a viable treasury reserve asset, and about 70% said holding cash rather than bitcoin carries a high opportunity cost over five years.

"Discipline has tempered exuberance, but not conviction," Schweiger said. "Investors are better informed and positioned for the next cycle, but they’re preparing for a slowdown once short-term catalysts pass."