Crypto Investors Remain Under Continued Hesitancy: What's Driving the Uncertainty?
Despite a recent surge in market capitalisation of crypto-assets, fuelled by positive and broadening investor interest, a new report suggests crypto investors remain under continued hesitancy. While institutional investors are increasingly bullish on cryptocurrency, with 83% planning to expand their allocations this year, this optimism isn't universal.
James Butterfill, Head of Research at digital asset manager CoinShares, says the low inflows seen last week imply a “continued hesitancy” from investors. Butterfill shared insights suggesting minor inflows for digital asset investment products over the last few weeks point to a “continued hesitancy” towards crypto amongst institutional investors amid a slowdown of the U.S. economy.
Institutional investors continue to remain bullish about digital assets, embracing instruments beyond holding crypto like staking and derivatives. Even though they are adopting new strategies, JPMorgan's survey reveals continued institutional hesitation towards crypto in 2025. What factors are contributing to this mixed sentiment?
Key Drivers of Hesitancy:
- Macroeconomic Headwinds: The current economic climate, with its uncertainties, plays a significant role in investor caution.
- Geopolitical Risks: Global instability creates an environment of risk aversion, impacting investment decisions.
- Regulatory Uncertainty: The lack of clear and consistent regulations continues to be a major concern for crypto investors. Several key financial stability risks exist due to this uncertainty.
Discover the macroeconomic headwinds, geopolitical risks, and regulatory uncertainty that are impacting crypto investment decisions. Stay informed about the evolving landscape of digital assets and the factors influencing investor sentiment.