When to buy cryptocurrencies

According to Martin Burgerr, director of client services at Sygnum, institutional investors have appreciated the rapid growth of the market this year. Still Bitcoin, which is traditionally considered the most conservative election in the crypto niche, has produced a 110 per cent jump since January 1, 2024 – and that’s a great result to invest in. Here’s a rejoinder on the matter, as cited by Coindesk.

Among the most important developments, perhaps, is the approval and subsequent launch of Bitcoin-based U.S. spot ETFs, which have the potential to accelerate institutional adoption of digital assets.


As of today, all BTC spot exchange traded funds in the US have recorded net inflows of $27.8 billion. The result is excellent and outperforms most of the market. It is important to take into account that Bitcoin ETFs are new products, which means that such achievements should surprise analysts even more.


Capital flows in spot Bitcoin ETFs in the U.S.

Of the 400 representatives of the organisations surveyed, 228 respondents, or 57 per cent of the total, said they plan to increase their crypto investments. 31 per cent of them plan to do so in the next quarter and 32 per cent plan to do so over the next six months.

Statistics on institutional investors who will increase, decrease or hold their own cryptocurrency portfolio

Going the opposite route is something almost no one wants to do. Still, only 5 per cent of respondents plan to reduce the allocation to cryptocurrencies in their portfolios, while 2 per cent have yet to make a decision on the matter.

Nevertheless, 44 per cent of large investors who plan to increase their cryptocurrency allocation will stick to investing in a single digital asset. 40 per cent have chosen active management, i.e. constant dynamic investments in different assets, as their main investment strategy, specifies Cointelegraph.

Percentage of respondents who will hold or not hold cryptocurrency in the future

According to the study, 36 per cent of survey participants who plan to hold their current positions are waiting for further market confirmation or optimal market timing before deciding to increase their cryptocurrency investments.


However, this approach seems no longer relevant given the behaviour of the digital asset market following Donald Trump's victory in the US presidential election. Still, Bitcoin is up 28 per cent over the past two weeks, Efirium has jumped 23 per cent and Solana is up 27 per cent. So far, things are looking like the best time to invest in crypto has passed.


Generally speaking, historically, the vague regulation of digital assets in the U.S. has been a major obstacle for traditional investors looking at coins as potential investments. As this situation improves, more organisations will want to integrate more deeply into crypto.

The catalyst for this process has already been found: the US presidential election was won on 5 November by Donald Trump, who has previously promised to address a host of regulatory issues in crypto.

For example, he promised to fire Gary Gensler as chairman of the Securities Commission, ensure adequate regulation for digital assets, and stop selling coins confiscated earlier by the US government, turning them into the country’s strategic cryptocurrency reserve.

Categories of digital assets in which institutional investors invest in

Also, a majority of institutional investors at 81 per cent said that better education about cryptocurrencies would lead them to invest more. It would also signal a shift from regulatory concerns to market-specific risk, strategic planning and deep dive into the technology.

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Overall, institutional investors are not yet allowed to fully dive into the crypto industry due to a number of factors. The main obstacle remains the uncertainty in the regulation of digital assets. Large financial institutions and corporations are cautious about crypto because the laws in this area are vague and contradictory.

Another obstacle for large players is the lack of proper infrastructure and financial instruments that are familiar to the classic market. In order to secure assets and reduce risks, such investors need instruments similar to traditional ones. For example, these can be spot ETFs on cryptocurrencies, custodial services for safe storage and asset management. Something similar in the U.S. so far only exists for Bitcoin and Etherium.

Institutional investors are also reluctant to invest in sectors with high volatility and large risks, which makes long-term investments less predictable and dangerous.

Investors tend to avoid assets with sharp price fluctuations, making it difficult to manage capital. Against this backdrop, crypto volatility is a deterrent to strategic and long-term decisions. However, it is important to realise that during the growth stages it benefits investors, not the other way around.

Cryptocurrency hacker

Additionally, reputational risks play a role. So far, some players associate the crypto market with cyberattacks, bankruptcies and scandals, which forms a negative image and does not favour the growth of trust from such industry participants.

They also avoid the risk of tarnishing their reputation by investing in assets associated with fraudulent cases. However, crypto still continues to grow and the share of illegal transactions in the total volume of transfers remains negligible.


Major players have enough reason to be cautious when interacting with cryptocurrencies. However, this trend is gradually changing - primarily due to the launch of spot Bitcoin-ETFs in the US. So from here on, digital assets will become more and more recognised as an investment tool.


Look for more interesting stuff in our crypto chat room. We look forward to seeing you there so that you don’t miss the continuation of the current bullrun in the coin industry.

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