Institutional Investors Plan 83% Increase in Crypto Holdings by 2025
3min read Institutional investors are increasingly bullish on cryptocurrencies, with a significant majority planning to boost their allocations in the coming years. According to a recent report, 83% of institutional investors are set to increase their crypto holdings by 2025. This shift in sentiment is driven by the belief that digital assets offer attractive risk-adjusted returns over the next three years. The report, compiled from interviews with over 350 institutional investors, highlights a growing interest in altcoins such as Solana and XRP, as well as stablecoins and decentralized finance (DeFi) platforms.
The report indicates that nearly three-quarters of the surveyed institutions already hold cryptocurrencies beyond Bitcoin and Ethereum, with many planning to allocate at least 5% of their portfolios to crypto. This trend is further supported by the growing adoption of stablecoins, which are being utilized for purposes beyond crypto transactions, including yield generation, foreign exchange, and internal cash management. The rise of DeFi is also shaping institutional investment strategies, with 24% of investors currently engaging with DeFi platforms and this number expected to surge to nearly 75% in the next two years.
Institutional interest in altcoins is expected to rise even further if US regulators approve pending applications for exchange-traded funds (ETFs) linked to digital assets. More than a dozen altcoin ETFs are currently awaiting approval from the US Securities and Exchange Commission (SEC), with Litecoin, Solana, and XRP standing the best chances of securing regulatory clearance in the near future. Institutional interest in Solana gained even more traction when the Chicago Mercantile Exchange (CME) Group launched futures contracts tied to the altcoin, marking a major milestone.
Some institutional investors are already actively increasing their crypto stockpiles. Metaplanet, a Japanese Bitcoin treasury company, continued its aggressive Bitcoin accumulation strategy with the purchase of an additional 150 BTC on March 18. The acquisition cost 1.88 billion yen, or $12.6 million, and each Bitcoin was purchased at an average price of $83,671. This latest buy brings Metaplanet’s total Bitcoin holdings to 3,200 BTC, which is currently valued at approximately $261.8 million. Despite this accumulation, the company’s stock price dipped 0.5% on the day, in contrast to the 19% surge it experienced on March 5 when it announced a larger purchase of 497 BTC.
To fund its Bitcoin acquisitions, Metaplanet issued over 44 million common shares. This strategy is similar to MicroStrategy’s Bitcoin-focused investment approach, earning Metaplanet the nickname “Asia’s MicroStrategy” due to its commitment to a treasury model centered around Bitcoin. The company’s Bitcoin yield, which measures the percentage change in BTC holdings relative to fully diluted shares outstanding, currently stands at 60.8% for the ongoing quarter. This is a significant slowdown from the previous quarter’s 310% yield. Metaplanet’s March 18 purchase solidified its position as the 11th-largest corporate holder of Bitcoin and the largest in Asia. The company also plans to acquire 21,000 BTC by 2026. Since Metaplanet’s decision to transform into a Bitcoin treasury firm, its stock experienced a dramatic rise of 4,800% as of Feb. 10. However, after peaking on Feb. 19, its share price fell 34%, though it is still well above its March 2024 low.
Ask Aime: Why is the altcoin market gaining interest from institutional investors?
Investor interest in Metaplanet is reflected in its expanding shareholder base, which grew by 500% in 2024 to reach 50,000 investors. The company’s market cap also surged 9,652% in the past year. This rise coincides with Japan’s increasingly favorable stance on digital assets. On March 6, the country’s ruling party took steps to ease crypto capital gains taxes, lowering them to 20%. In November of 2024, the government passed a stimulus package that included commitments to crypto tax reform. Japanese lawmaker Satoshi Hamada urged the government to consider establishing a strategic Bitcoin reserve, and proposed that part of the country’s foreign exchange reserves be converted into Bitcoin. However, Prime Minister Shigeru Ishiba responded cautiously by stating that Japan lacks sufficient insight into the strategies of other nations regarding Bitcoin reserves, making it difficult to take a definitive stance on the matter.
Meanwhile, business intelligence firm and Bitcoin investor Strategy also recently announced plans to offer 5 million shares of its Series A Perpetual Strife Preferred Stock. The proceeds are expected to go toward general corporate purposes, including more Bitcoin acquisitions. The company stated that while it plans to use the funds for additional BTC purchases, the decision is still subject to market conditions and other factors. The new stock offering will accumulate cumulative dividends at an annual rate of 10%, with stockholders receiving quarterly payouts beginning on June 30, 2025. Strategy also pointed out that it retains the option to repurchase all outstanding shares for cash if the number of shares remaining in the market falls below 25% of the total issued amount.
The stock issuance announcement was made after Strategy’s smallest Bitcoin purchase to date. On March 17, the company shared that it bought 130 BTC for $10.7 million in cash at an average price of approximately $82,981 per Bitcoin. This was the firm’s smallest purchase since its first Bitcoin investment in August of 2020, with the previous lowest being a 169 BTC acquisition in August of 2024. The company’s reduced buying activity comes amid concerns that the Bitcoin bull cycle may be over. On March 18, CryptoQuant founder and CEO Ki Young Ju expressed the view that the market has entered a period of bearish or sideways price action that could last between six to twelve months. Since first investing in Bitcoin, Strategy and its subsidiaries accumulated a total of 499,226 BTC at an aggregate purchase price of $33.1 billion. The average cost per Bitcoin, including fees and expenses, stands at $66,360. If the company acquires just 774 more BTC, it will surpass the 500,000 BTC milestone.
