Increasing Engagement and Rising Allocations: Research on EU and UK Institutional Investors Shows Plans to Increase Allocations in 2025

Our Commitment to the EU and UK

In March 2025 Coinbase Institutional, in collaboration with EY-Parthenon, published a global survey of more than 350 institutional investors. To demonstrate our commitment and ongoing investment in our International business, particularly in the European region, we are publishing the findings from approximately 100 institutional investors located in the EU and UK.

Following Coinbase’s VASP registration issued by the United Kingdom’s Financial Conduct Authority in February 2025, and after securing a Markets in Crypto Assets (MiCA) licence from the Luxembourg Commission de Surveillance du Seceuter Financier (CSSF), Coinbase is doubling down on its efforts in the region and continues to invest heavily to help onboard the next one billion people into crypto. These recent milestones represent an important chapter in Coinbase’s international expansion strategy, while prioritizing security, compliance and user education.

Below are some of the key insights from the survey; the full results are available here.

Increasing Holdings

More than four-fifths (86%) of the European and UK respondents said they expect to increase their holdings in cryptocurrencies, digital assets, or crypto funds in 2025. Half (50%) of respondents plan to allocate over 5% of their assets under management (AUM) to cryptocurrencies.

That interest extends beyond BTC and ETH, and 71.3% of institutional investors in the EU and UK that currently invest in spot crypto claim to currently hold one or more altcoins. More than four in ten (42.2%) currently hold or use stablecoins, and another 34.3% are interested in leveraging them.

High Interest in Registered Vehicles and Tokenised Assets

A vast majority (83%) of the surveyed institutional investors in the EU and UK have exposure or plan to make digital asset allocations in 2025, driven by an expectation of higher returns compared to other asset classes. Most (57%) prefer to gain exposure to crypto through registered vehicles (e.g. ETPs).

Tokenised Assets, A Use Case of Interest

Respondents are nearly unanimously (98%) interested in tokenized assets, such as tokenised bonds, equities and funds. This interest is largely driven by desire for portfolio diversification and enhanced portfolio construction. While only 13% have actually invested in tokenised assets, 69% plan to invest by 2026. Notably, EU/UK investors show more interest in tokenised commodities (e.g. gold and oil) than US investors (56% and 36% respectively).

DeFi is Set for Meaningful Growth

Surveyed investors reported that their engagement with DeFi is expected to increase 2.5 times in the next two years, rising from 27% to 68%. However, investors cite an internal knowledge gap as a primary obstacle slowing their adoption.

Clarity and Education Will Drive Adoption

Meanwhile, concerns on regulatory clarity and volatility remain key issues for investors globally. In light of this, emerging regulatory clarity is recognized as the #1 catalyst for industry growth.