Portfolio Diversification Leading Driver For Crypto Investment In...

Portfolio Diversification Leading Driver For Crypto Investment In...

Diversification has become the top driver for crypto investment in 2025, with rising ETF demand and lingering regulatory gaps shaping investor behavior.

Portfolio diversification has overtaken the pursuit of the “crypto megatrend” as the top reason for investing in crypto in 2025, according to Sygnum Bank’s new Future Finance Report 2025.

According to the report, 57% of respondents now view diversification as their primary motivation for investing. This surpassed last year’s top driver, exposure to crypto’s long-term upside, which fell from 62% to 53%.

“This could indicate that crypto is now being used more deliberately as a core portfolio component, with its perceived diversification benefits taking precedence over chasing pure upside potential,” Sygnum wrote.

While diversification leads, 45% of respondents view crypto, particularly Bitcoin (BTC), as a safe-haven and macro hedge, driven by rising sovereign debt loads, inflation concerns, geopolitical tensions and falling trust in fiat currencies. Interest in crypto as a “new alternative asset class” declined to 28%.

Related: Crypto bank Sygnum hits unicorn status with new $58M raise

The report also noted a maturing market environment, with the adoption of regulated derivatives, corporate balance-sheet growth and a surge in exchange-traded fund products contributing to broader confidence. More than 150 crypto ETF applications are pending in the US, and 70% of investors say they would increase exposure if staking is permitted in future products, particularly Solana (SOL) and multi-asset ETPs.

About 70% of surveyed investors said they would increase their allocations to crypto ETFs if staking yields were included. Even those already interested in Bitcoin (BTC) and Ether (ETH) ETFs indicated that staking would materially influence their allocation decisions.

Sygnum said high-net-worth individuals (HNWI) represent the largest cohort in this year’s survey, often allocating 10%–20% or more of their investable wealth to cryptocurrency. Ninety percent of these investors said that crypto was important for long-term wealth preservation and legacy planning, with more than half strongly agreeing.

Related: Bitcoin makes up one-third of investor crypto portfolios in 2025

Source: CoinTelegraph