State Street Study: Most Institutions Will Double Crypto Holdings Within 3 Years

Key Findings from State Street's Study

A new report from State Street’s 2025 Digital Assets and Emerging Technology Study shows that most institutional investors plan to significantly increase their exposure to digital assets over the next three years. More than 50% of respondents expect tokenized assets to account for 10-24% of their total investment portfolios by 2030—marking a major shift toward blockchain-powered instruments in institutional portfolios.

The study surveyed senior executives from asset management and ownership firms, and reveals that digital assets are moving from experimental holdings to mainstream components of institutional portfolios. As digital adoption grows, more institutions are expected to take strategic positions in cryptocurrencies, digital cash, and tokenized assets.

Big Portfolio Changes Ahead

Currently, institutional portfolios allocate about 7% of assets to digital instruments, including cryptocurrencies, digital cash, and tokenized versions of traditional securities like stocks and bonds. Over the next three years, this allocation is expected to more than double, reaching 16%. As tokenization of real-world assets grows, digital cash and tokenized securities are emerging as the most common ways for institutions to gain digital exposure.

Asset Managers Leading the Charge

Asset managers are showing a deeper engagement with digital assets than asset owners. For instance, managers are twice as likely to hold 2-5% of their portfolios in Bitcoin and slightly more likely to allocate 5% or more. When it comes to Ethereum, managers hold significantly more than asset owners, with three times as many allocating at least 5% of their portfolios to the second-largest cryptocurrency. Additionally, 6% of asset managers report holding 5% or more in smaller cryptocurrencies, meme coins, and NFTs, compared to just 1% of asset owners—indicating early experimentation with emerging digital instruments.

Tokenization Boom on the Horizon

Tokenization of assets is also becoming a focal point for institutional investors. Managers report much higher exposure to tokenized public assets (6% vs. 1%), private assets (5% vs. 2%), and digital cash (7% vs. 2%) than asset owners. By 2030, more than half of respondents expect tokenized or digital assets to make up between 10% and 24% of their portfolios, reflecting a strategic pivot toward blockchain-based investments.

Although stablecoins and tokenized assets currently dominate in terms of portfolio allocations, cryptocurrencies like Bitcoin and Ethereum are still the key performers in terms of returns. Over 25% of respondents cited Bitcoin as the top-performing asset in their digital holdings, with Ethereum following closely behind. While tokenized assets contribute less to returns today, their role is expected to grow as markets mature.

Long-Term Outlook: Tokenization of Private Assets

Looking toward the future, State Street’s study suggests that private assets will likely be the first major category to benefit from the broader adoption of tokenization. Most institutions believe digital assets will become mainstream within the next decade, with careful focus on strategy, efficiency, and compliance during the early stages of adoption.

Overall, State Street’s findings reveal that institutional adoption of digital assets is accelerating, with a growing emphasis on tokenized securities, cryptocurrencies, and blockchain-powered investments. As this shift continues, expect digital assets to play an increasingly central role in institutional investment strategies over the coming years.