As Crypto Falls, Institutions See a Different Outlook: Expectations Rise from 11% to 51% in Two Years!

In a State Street survey of 300 participants, the share expecting digital assets to be widely adopted within five years rose to about 51%, up from 11% in 2024.

The State Street study, published Tuesday and reported by CoinDesk, revealed how asset managers, asset owners, and wealth managers view digital assets. Although the crypto market has been in the spotlight amid its recent declines, the study’s long-term expectations show a marked shift compared with 2024.

About half of respondents believe digital assets will become widespread in the financial world within the next five years. That share, which was just 11% two years ago, reached 51% in the latest survey—a difference of 40 percentage points.

Share of portfolios also expected to rise

Digital assets make up an average of 11% of the portfolios of institutions surveyed. Respondents expect this share to grow over the next three years.

The study highlights two separate trends: The share of respondents who believe digital assets will gain wider acceptance is rising, while participating institutions also expect to allocate more of their own portfolios to these assets. These figures reflect survey respondents’ expectations; they are not a measure of new capital inflows that have already occurred.