Binance Research Report: 88% of Institutional Users Are Optimistic about the Long-term Development of Crypto Assets

Binance Research and Binance VIP & Institutional announced their survey of institutional crypto users on June 30. The survey results show that 63.5% of Binance VIP and institutional users are optimistic about the development of crypto assets in the next year. The vast majority (88%) of respondents also expressed optimism about the development of crypto assets in the next ten years.

In addition, many institutional users believe that more real-world use cases (26.9%) and improved regulatory clarity (25.3%) will promote the popularization of crypto assets, which is much higher than price factors (3.4%). This clearly shows that institutional users tend to adopt long-term strategies and are less sensitive to short-term fluctuations in market cycles.

Between March 31 and May 15, 2023, Binance conducted a comprehensive survey of 208 VIP and institutional users, covering demographic characteristics, attitudes, preferences, popularity and motivations towards crypto asset investments. The main findings include:

● Institutional users’ asset allocation: Despite the general market situation last year, most (47.1%) investors still retained crypto assets in their asset portfolios, and more than one-third of investors (35.6%) increased their holdings of crypto assets. Only a few investors (17.3%) reduced their holdings of crypto assets.

● Future allocation intention: Most users believe that they will increase (50.0%) or maintain (45.7%) their crypto asset holdings in the next 12 months. Only 4.3% of investors believe that they will reduce their crypto asset holdings.

● More optimistic about Bitcoin: Market sentiment towards Bitcoin and the entire crypto asset industry has remained largely unchanged over the past year (47.8% and 44.7%, respectively), but users are more optimistic about Bitcoin than the crypto asset market as a whole (47.3% vs. 33.2%). At the same time, 22.1% of investors have turned bearish on the overall crypto asset market, while only 4.8% have turned bearish on Bitcoin.

● Infrastructure and Innovation: 53.9% of investors said that they or the funds they manage value infrastructure projects the most, followed by Layer 1 and Layer 2 technologies (48.1% and 43.8%, respectively). When asked about specific areas, 51.0% of users said that innovation in the wallet field (such as self-custody, UX/UI improvements) is also important.

● Investment motivation: 42.8% of investors said that the potential for high returns is the biggest attraction of crypto asset investment. Secondly, 37.5% of investors said that long-term investment in emerging technologies is their primary motivation.

● Trading platform: Centralized trading platforms are still the most popular platforms for institutional users for institutional-level transactions (90.5%) and custody activities (58.2%). Liquidity (28.0%), security (26.0%) and reputation (22.5%) are the three major considerations for users to choose trading platforms.

“Institutional users typically take a long-term approach when entering new markets. Based on our survey, these users are bullish on crypto assets in the long term and believe that use cases will drive adoption more than price. Therefore, we believe that they take the same approach with crypto assets,” said Catherine Chen, Director of VIP and Institutional Users at Binance . “These findings also match Binance’s robust institutional user growth rate (institutional user numbers have increased by 89% since the peak of the bull market in Q4 2021). We will study this survey report with our users and apply the findings to our products.”