Institutional investors remain bullish on crypto but are becoming far more selective about how they gain exposure, according to a new survey by Coinbase and EY-Parthenon. The January 2026 poll of 351 decision-makers found that 73% plan to increase their digital asset allocations this year, and 74% expect crypto prices to rise over the next 12 months. Yet nearly half said recent volatility has pushed their firms to place greater emphasis on risk management, liquidity and position sizing.
73% Plan to Boost Allocations, Risk Controls Tighten
“People are still interested in crypto. They want to see tighter risk controls, but they want to stay allocated,” said David Duong, Coinbase’s head of institutional research, in an interview. The findings suggest institutions are no longer treating crypto as a short-term trade. Instead, many are building more permanent operating models around the asset class, with a heavier focus on governance, compliance and operational resilience.
Spot ETFs Dominate as Entry Point, but Not a Final Stop
The survey shows a clear preference for regulated vehicles: 66% of respondents gain exposure through spot crypto exchange-traded funds, and 81% prefer spot exposure via a registered vehicle. Duong said ETFs are not merely a transitional step. “It caters to a certain segment of the investor community.” Still, as the market matures, some institutions may eventually want direct exposure to underlying assets rather than wrappers only.
Regulatory Clarity: Both Driver and Barrier
Perhaps the most striking tension appears around regulation. Among those planning to increase holdings, 65% cited greater regulatory clarity as a key driver, yet 66% also called regulatory uncertainty a primary concern when investing in digital assets. “Regulatory clarity is acting as both the driver, but also the obstacle,” Duong noted. Recent U.S. legislative efforts, such as the proposed Digital Asset Market CLARITY Act, aim to define SEC and CFTC roles and set rules for stablecoins and market structure. While momentum for clearer rules is building, the current vacuum continues to constrain capital inflows.
Stablecoins and Tokenization Move Beyond Speculation
Interest in stablecoins is shifting from speculation to infrastructure. 86% of respondents said they already use stablecoins or are interested in using them, with top use cases including T+0 settlement, internal cash management and money movement. Meanwhile, 63% indicated strong interest in investing in tokenized assets, and more than 60% expect tokenization to significantly affect trading, clearing and settlement within three to five years.
Custody Priorities: Compliance and Security Override Cost
The criteria for choosing a custodian have flipped dramatically. The share citing regulatory compliance as a key factor jumped to 66% from 25% a year earlier. The importance of security and key-signing protocols surged to 66% from 8%. “Compliance and security are now the top priorities. Cost, interestingly enough, has fallen to the bottom of the list,” said Duong. This shift reflects how institutions now view crypto not merely as a tradeable asset but as infrastructure for settlement, collateral, and other use cases.
For Coinbase, the survey underscores that institutions still want crypto exposure, but only with stronger guardrails. For the broader market, the next phase of adoption may depend less on enthusiasm alone and more on whether the industry can deliver the controls large investors now demand.