Crypto market regulatory clarity was cited as the top catalyst for growth in the digital asset industry, according to a survey by crypto exchange Coinbase (COIN) and consulting firm EY-Parthenon (EYP).

Coinbase and EY Parthenon surveyed 352 institutional investors between Jan. 13 and Jan. 24 this year.

86% of those surveyed said they had exposure to digital assets or planned to make allocations in 2025, and 84% said they had increased allocations to crypto and crypto-related products in 2024.

59% of respondents said they planned to allocate more than 5% of their assets under management (AUM) to cryptocurrencies in 2025.

An improving regulatory backdrop under Donald Trump's new administration is viewed as a large tailwind for the digital asset industry. The President has promised to make the U.S. the " crypto capital of the world ."

Altcoins are also becoming increasingly popular amongst institutional investors, according to the survey. 73% of respondents said they held tokens other than bitcoin (BTC) and ether (ETH), led by hedge funds at 80%.

About half of those surveyed said they leverage stablecoins, with yield generation, transactions, and foreign exchange cited as the main use cases.

60% of investors said they preferred to gain exposure to crypto via registered vehicles such as exchange-traded products (ETPs).

The survey focused on decision makers in the U.S. and Europe, with some participation from investors worldwide.

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