According to a March 18 report from Coinbase and EY-Parthenon, institutional investors are increasingly optimistic about cryptocurrencies, with 83% planning to increase their cryptocurrency allocations this year.
Currently, nearly 75% of the firms surveyed hold cryptocurrencies beyond Bitcoin and Ether, and a significant majority aim to increase their cryptocurrency allocations to 5% or more of their portfolios.
The report indicates that investors are driven by the belief that "cryptocurrencies represent the best opportunity to generate attractive risk-adjusted returns over the next three years."
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Coinbase, the largest US crypto exchange, and consulting firm EY-Parthenon, compiled these insights from interviews with more than 350 institutional investors in January.
Among altcoins, XRP and Solana are the most favored by institutions.