The ongoing regulatory embrace of cryptocurrencies is generating interest in the asset class among institutional investors, according to a new report by Amundi.
It found U.S. regulatory actions have pushed crypto out of an investment grey zone with vague policies or enforcement policies in place only. However, the U.S. Securities and Exchange Commission has softened its previous stance on digital assets with two pieces of legislation that give clear definitions of what constitutes a security rather than a commodity.
“Instead of pushing cryptocurrencies to the sidelines, policymakers are now looking for ways to safely integrate them into the broader financial system,” the report said. Since digital assets only represent about 1.5 per cent of the global liquid market portfolio, a small change in demand could create substantial growth in the market, it added.
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The report identified three developments leading to institutional investor interest in cryptocurrencies: banks and custodians launching custody, tokenized deposits and settlement platforms initiatives that can increase global finance on blockchain infrastructure; asset managers developing tokenized funds and crypto exchange traded funds; and an ongoing controversial discussion on whether central banks and sovereign wealth funds should hold Bitcoin or major digital assets as part of a diversified reserve strategy.
The report added that the discussion is modeled after the way countries manage gold reserves and reveals a growing acceptance for digital assets and its potential strategic importance in the financial infrastructure in the future.
A separate report by WTW found while the acceptance of cryptocurrencies is increasing, its risk component isn’t going away, noting since the first half of 2025, US$3 billion worth of digital assets were reported as stolen. It noted as asset managers expand their exposure to tokenized assets with custody partnerships in place, it leads to an operational gap between traditional finance and decentralized finance decreases.
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Among the stolen assets, 23 per cent were laundered entirely before public disclosure. So far, fewer than five per cent of stolen assets have been recovered.
“Implications regarding the rise of digital assets crime encompass more businesses than ever; incident response teams, vendor oversight and insurance coverage all must keep pace with a market where speed and complexity define the risk landscape.”
Operational resilience can be increased through real-time monitoring, automated legal and compliance workflows and incident response, the report said.