Binance Research, in collaboration with Binance VIP and Institutional, has recently released the results of its Crypto Outlook Institutional Survey. The study reveals strong positive sentiment towards cryptocurrencies among institutional investors, with 63.5% expressing optimism for the coming year and a surprising 88% showing a positive outlook for the next decade.

The survey, which was conducted from March 31 to May 15, 2023, collected responses from 208 Binance VIP and institutional users. Their goal was to explore the demographics, attitudes, preferences, and motivations of these investors toward cryptocurrency investments.

Key survey results indicate that despite market fluctuations over the past year, 47.1% of investors have maintained their cryptocurrency allocation, while 35.6% have increased their allocation. Only a minority, 17.3%, have reduced their cryptocurrency allocation. Looking ahead, most respondents expect to increase (50.0%) or maintain (45.7%) their allowance over the next 12 months.

The study also highlights that institutional investors believe cryptocurrency adoption will be driven more by real-world use cases (26.9%) and improvements in regulatory clarity (25.3%) than by higher prices (3 ,4 %). This suggests that institutional participation in the crypto market is taking on a longer-term horizon, less reactive to short-term market cycles.

Interestingly, the survey reveals a more positive perception of Bitcoin compared to the broader crypto sector. While perceptions of Bitcoin and cryptocurrencies were largely flat over the past year (47.8% and 44.7% respectively), a larger proportion of respondents turned more positive towards Bitcoin (47.3% vs. 33 ,2 %).

When it comes to investment motivation, 42.8% of investors cited the potential for large investment returns as the most compelling reason to invest in cryptocurrency. This was followed by 37.5% of investors who see long-term exposure to an emerging technology as the main motivation.

Centralized exchanges remain the most popular platform for institutional trading (90.5%) and custodial activities (58.2%). The top three criteria for selecting a trading platform were liquidity (28.0%), security (26.0%) and reputation (22.5%).

Catherine Chen, Head of Binance VIP and Institutional, commented on the findings: “Institutions typically have a long-term horizon when entering a new market, and our survey indicates the same is true for crypto assets. These findings are in line with the rate healthy institutional account growth on Binance, which is up 89% since the height of the bull market in Q4 2021.”

The results of this survey underline the growing institutional interest and confidence in the long-term potential of cryptocurrencies.