Institutional investors remain generally positive on digital assets despite recent market volatility, but are becoming more selective about how they gain exposure, according to a new survey from Coinbase and EY-Parthenon.
The January 2026 survey of 351 institutional decision-makers found that 73% plan to increase their digital asset allocations this year, while 74% expect cryptocurrency prices to increase over the next 12 months. At the same time, nearly half said recent volatility has led their firms to place greater emphasis on risk management, liquidity and position sizing.
That combination of confidence and caution points to a maturing market, said David Duong, head of institutional research at Coinbase.
“People are still interested in cryptocurrencies,” Duong said in an interview. “They want to see stricter risk controls, but they want to stay assigned.”
The findings suggest that institutions are no longer treating cryptocurrencies as a short-term trade. Instead, many are building more permanent operating models around this asset class, with a greater focus on governance, compliance and operational resilience.
A clear example is how institutions now prefer to access the market. The survey found that 66% of respondents gain exposure through spot cryptocurrency exchange-traded funds (ETFs) and 81% prefer spot exposure through a registered vehicle. Duong said that doesn’t mean exchange-traded products are just a temporary step before institutions fully enter the chain.
“I don’t think it’s just a transitional vehicle,” he said. “It caters to a certain segment of the investment community.” Still, he added that as the market develops, more institutions may want to gain exposure to the underlying assets directly rather than just through fund wrappers.
Regulation remains the biggest tension in the market. Among respondents planning to increase their holdings, 65% said greater regulatory clarity was a key factor, but 66% also rated regulatory uncertainty as a top concern when investing in digital assets.
That contradiction could become important if clearer rules emerge. “Regulatory clarity acts as a driver but also as an obstacle,” Duong said.
Recent developments surrounding the proposed Digital Asset Market CLARITY Act have added urgency to that dynamic. The bill, which aims to define how crypto assets are regulated in the US, would clarify the roles of the SEC and CFTC while establishing rules for stablecoins and market structure. While legislation has yet to be passed, policymakers and regulators have expressed growing support for a clearer framework, and parallel guidance from agencies like the Office of the Comptroller of the Currency has begun to outline how banks can interact with digital assets.
For institutions, that evolving context is critical: clearer rules could unlock broader participation, while continued uncertainty remains a key constraint on capital entering the space.
The survey also found growing interest in stablecoins and tokenization, two areas that are increasingly seen as practical infrastructure rather than speculative bets. Eighty-six percent of respondents said they already use stablecoins or are interested in using them, with top use cases including T+0 settlement and internal cash management and money movement. Meanwhile, 63% said they are very interested in investing in tokenized assets, and more than 60% expect tokenization to significantly impact trading, clearing and settlement within three to five years.
Custody has also moved higher on the priority list. The proportion of respondents citing regulatory compliance as a key factor in selecting a custodian increased to 66% from 25% the previous year. The importance of security and key signing protocols jumped from 8% to 66%.
Duong said that shift reflects how institutions think differently about cryptocurrencies as use cases expand beyond commerce.
“Compliance and security are now top priorities,” he said. “Interestingly, cost has fallen to the bottom of the list.”
For Coinbase, the message is that institutions still want exposure to cryptocurrencies, but only with tighter guardrails. For the broader market, the survey suggests that the next phase of adoption may depend less on enthusiasm alone and more on whether the industry can offer the controls that big investors now expect.
