A joint report by Coinbase and EY Parthenon, released March 18, shows institutional investors are ramping up digital asset exposure while tightening risk controls. The survey, conducted in January 2026 among 351 institutional investors globally, highlights shifts in allocation strategy and infrastructure priorities.
73% Plan to Increase Allocations; 74% Bullish on Prices
Nearly three-quarters of respondents intend to raise digital asset holdings in 2026. The report states: “73% of respondents intend to increase their digital asset allocations in 2026, driven by greater regulatory clarity, expanded availability of regulated products and improved infrastructure.” Sentiment toward price trends remains positive: 74% expect crypto prices to rise over the next 12 months. However, volatility has sharpened focus on risk management: 49% said recent volatility strengthened their emphasis on risk management, liquidity, and position sizing.
Regulatory Clarity vs. Uncertainty: Market Structure Top Concern
Among investors planning to raise exposure, 65% cited clearer rules as a primary catalyst, yet 66% simultaneously flagged regulatory uncertainty as a leading concern. Market structure was the top area requiring clarity, cited by 78% of participants. Tokenized assets face similar constraints. Coinbase and EY Parthenon describe a transition from speculative drivers toward disciplined execution, where regulated access and operational controls define participation.
Spot ETFs and Custody Dominate; Multi-Custodian Strategies Widespread
Portfolio construction is shifting toward familiar financial instruments. Two-thirds of respondents have exposure via spot crypto ETFs or ETPs, and 81% prefer regulated vehicles for spot holdings. Custody priorities have evolved: 66% emphasize regulatory compliance and security protocols, a sharp increase from prior-year levels. 61% of firms use multi-custodian strategies to mitigate operational risk. Globally, clear frameworks in Europe and parts of Asia attract capital, while uncertainty elsewhere constrains scaling.
Stablecoins and Tokenization: Infrastructure Adoption Accelerates
Beyond core allocations, stablecoin and tokenization infrastructure usage is rising. 86% of respondents either use or explore stablecoins for settlement and treasury functions. Asset manager interest in tokenizing assets jumped from 40% to 64% year-over-year, while investor interest rose from 57% to 63%. The report notes: “Tokenization is expected to begin meaningfully impacting trading, clearing, and settlement.” Scaling will depend heavily on regulatory clarity, integration, and secondary liquidity.