Institutional Investments in Crypto Asset Markets

The research project Institutional Investments in Crypto Asset Markets, led by the Institute of Financial Services Zug (IFZ) at the Lucerne University of Applied Sciences and Arts, investigates the role and importance of institutional investors in the rapidly evolving world of crypto assets.

While crypto assets like Bitcoin have seen significant uptake among retail investors, with around 11% of the Swiss population involved (HSLU, 2025), institutional participation remains relatively unclear. This diverges from typical financial innovation patterns, which are usually led by institutional actors.

Background
Crypto assets are here to stay as an emerging asset class. Despite the availability of funds and derivatives, the markets remain largely unregulated and opaque, posing additional risks. DLT also enables new forms of asset generation and decentralized financial applications, potentially transforming the structure of capital markets. This creates opportunities for institutional investors, but also new risks.

Objectives

  • Measure the extent of institutional investment in crypto markets
  • Identify key barriers to institutional adoption
  • Analyze the adoption gap between retail and institutional investors
  • Evaluate DeFi’s role as an alternative within the financial system
  • Provide insights into future trends and opportunities for institutions

Research Questions
Despite growing acceptance among retail investors, there is only limited research on the involvement of institutional investors in the crypto assets market. The project will investigate:

  1. To what extent are institutional investors currently involved in crypto asset markets?
  2. What are the key deterrents preventing these investors from entering the space, either directly or via investment vehicles?
  3. How does the adoption trajectory of crypto assets differ from traditional financial innovations, and what does this imply for future developments?

By addressing these questions, the project aims to contribute to a clearer understanding of institutional dynamics within crypto asset markets and to support informed decision-making among industry stakeholders and policymakers.

References

HSLU (2025). Weshalb und über welche Plattformen werden Kryptowährungen gekauft?. Retrieved from: https://hub.hslu.ch/retailbanking/weshalb-und-ueber-welche-plattformen-werden-kryptowaehrungen-gekauft/