Sygnum, a crypto-friendly bank with more than $4.5 billion in assets under management, has forecasted that Q4 2025 will remain bullish for crypto despite the October downturn. The Swiss banking group also noted that despite last month’s bearish outlook, the demand for cryptocurrency exchange-traded funds (ETFs) remained high.
Crypto Set for a Bullish Q4 Despite Uncertainty
In its Future Finance 2025 report, Sygnum Bank stated that institutions are planning to increase their allocations to cryptocurrencies. It noted that more than 61% of institutions plan to increase their exposure, while 55% remain bullish on the short-term price performance.
The bank’s report, which surveyed more than 1,000 institutional investors from 43 countries, added that 73% of institutions were dipping their toes in crypto due to high returns. However, the focus remained on portfolio diversification and not speculation. Others were also adopting a pro-crypto approach to align with changes in the global financial industry.
“Institutions are thinking less about crypto as defense and more about participation in the structural evolution of global finance.”
Lucas Schweiger, the lead crypto asset researcher at Sygnum, also added that developments that have happened in the ecosystem in 2025, including regulatory changes, have also had an impact on the demand for crypto by institutions.
“The story of 2025 is one of measured risk, pending regulatory decisions, and powerful demand catalysts against a backdrop of fiscal and geopolitical pressures.”
The report’s release comes after a turbulent October, during which more than $19 billion was liquidated. Its bullish outlook aligns with a mild recovery seen across the crypto market in the last week, strengthening the case for a bullish Q4. After briefly falling below $100,000 on November 4, Bitcoin price had rebounded to trade above $104,000 at press time.
Even with the ongoing recovery, Sygnum expects the market to cool down by mid-2026. This will be due to fading macro tailwinds, alongside reduced buzz in interest rate cuts. However,
Institutions Shift Attention to Crypto ETFs
Sygnum’s report also took note of the rising demand for crypto ETFs, with institutions leading the charge. It observed that 80% of the surveyed institutions stated that they wanted more exposure to ETFs beyond Bitcoin and Ethereum.
Nevertheless, most of the demand for these products will be driven by staking, with the report also mentioning that 70% of institutions would increase their allocations to crypto ETFs if regulators allowed staking.
Currently, US regulators, more so the US Securities and Exchange Commission (SEC), have not provided any green light for crypto staking. However, that might change after the US Internal Revenue Service (IRS) issued guidelines allowing crypto exchange-traded products (ETPs) to provide staking.
In a post on X, US Treasury Secretary Scott Bessent stated that the new guidelines will not only support innovation but also aid in the US’ bid to become a crypto hub.
“Today, [the US Treasury] and the [IRS] issued new guidance giving crypto exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors.”
However, in September, the US Securities and Exchange Commission (SEC) delayed the decision on the applications made by firms such as BlackRock, Fidelity, and Franklin Templeton seeking staking for their Ethereum ETFs.
