Institutions Stay Bullish on Crypto as Staking ETFs Emerge as the Next Big Catalyst

Getting your Trinity Audio player ready...

• 61% of institutions plan to expand cryptocurrency exposure.
  
• Staking ETFs could be the next major institutional catalyst.
  
• Regulatory delays have slowed but not stopped institutional demand.

Despite October’s sharp $20 billion market drop, institutional investors are showing remarkable resilience in digital assets. According to a recent Sygnum report surveying 1,000 global nstitutions, over 61% plan to increase their cryptocurrency investments, with 55% maintaining a Bullish short-term outlook. The driving factor remains the expectation of higher future returns, even amid ongoing market volatility.

Regulatory Uncertainty Clouds Market Outlook

Investor confidence is tempered by delays in key regulatory milestones, including the Market Structure bill and approvals for new altcoin exchange-traded funds (ETFs). The U.S. government shutdown, now over 40 days, has further postponed the potential approval of at least 16 pending ETF applications. Despite these uncertainties, institutions continue to actively participate, signaling a maturing market where discipline replaces blind exuberance.

Crypto Staking ETFs: The Next Institutional Catalyst

Looking ahead, crypto staking ETFs may become a major growth driver for institutional demand. Over 80% of surveyed institutions expressed interest in ETFs beyond Bitcoin and Ether, and 70% indicated they would boost investments if staking rewards were included. Staking allows investors to lock tokens in proof-of-stake networks, securing the blockchain while earning passive returns—a compelling incentive for professional portfolios.

Also Read: Bitcoin Supply Tightens as Demand and Institutions Surge

Measured Risk and Long-Term Growth

Lucas Schweiger, Sygnum’s lead crypto researcher, highlights 2025 as a year defined by measured risk and informed decision-making. Institutions are seeking diversified exposure to digital assets while considering fiscal and geopolitical pressures. With strong participation and pending regulatory approvals, the groundwork is being laid for a significant influx of institutional capital in the months ahead.

Despite short-term corrections and regulatory delays, institutional confidence in cryptocurrencies remains high. Market maturity, staking incentives, and ETF approvals could unlock the next wave of investment, reinforcing crypto’s role as a long-term growth asset for professional investors.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.