Institutional investors are returning to the crypto market, spurred by the launch of the BTC Spot ETF.

According to The Block, a recent report from Nickel Digital Asset Management, a London, UK-based digital asset investment firm, predicts that "institutional investors will increase their crypto investments this year." "Three out of four institutional investors currently investing in crypto plan to increase their crypto investments and are positive on crypto investments from both a short-term and long-term perspective," the report said. While it was expected that the SEC's approval of a Bitcoin Spot ETF would generate crypto optimism among institutional investors, the number of institutional investors who said they plan to increase their crypto investments is still surprising, with 87% of institutional investors surveyed saying that the crypto investment opportunity is attractive, and 20% saying that crypto is a very attractive investment." The survey was conducted among institutional investors based in the U.S., U.K., Germany and other countries, with total assets under management of approximately $816 billion. About 13% said they would increase their crypto allocations, with sovereign wealth funds, pension funds, family offices, and hedge funds cited as the most likely candidates.

Meanwhile, Wall Street investment bank Bernstein released a report predicting that bitcoin ETFs will grow to more than $300 billion in assets under management by 2025, according to DL News. "BTC holdings in BTC spot ETFs will account for about 10% of the total value of bitcoin," said Bernstein analyst Gautam Chhugani. "The success of bitcoin spot ETFs will increase interest in crypto asset management. We will work with regulators to develop new products, and more market participants will convert from crypto skeptics to potential adopters to explore business opportunities."