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EU and UK Crypto Allocations Surge: Half to Devote 5%+ of AUM by 2025

2025-07-12 00:39:29

EU and UK Crypto Allocations Surge: Half to Devote 5%+ of AUM by 2025

Main Idea

Institutional investors in the EU and UK are significantly increasing their allocations to digital assets, with regulatory clarity being a key growth catalyst, though challenges like volatility and expertise shortages remain.

Key Points

1. By 2025, half of institutional investors in the EU and UK plan to allocate 5%+ of their AUM to digital assets, up from 46% in 2024.

2. Regulatory clarity is the top growth catalyst (58%), while volatility (51%) and market manipulation risks (42%) remain concerns.

3. Tokenization attracts strong interest, with 58% 'very interested' in assets like tokenized commodities (56%) and real estate (42%).

4. DeFi engagement is projected to surge 2.5x to 68%, with foreign exchange (75%) and transactional efficiency (67%) as primary use cases.

5. 66% of investors flagged internal expertise shortages as a hurdle to DeFi adoption, and 62% highlighted regulatory compliance risks.

Description

Institutional investors across the EU and UK are significantly increasing their cryptocurrency allocations, with 86% planning to boost holdings or enter the market in 2025, according to a Coinbase and EY-Parthenon survey of 97 institutions. DeFi Engagement Set to Jump 2.5x in European Institutions Half of respondents intend to allocate over 5% of their assets

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