Institutional investors remain broadly positive on digital assets despite recent market volatility, but they are becoming more selective about how they gain exposure, according to a new survey from Coinbase and EY-Parthenon.

The January 2026 survey of 351 institutional decision-makers found that 73% plan to increase their digital asset allocations this year, while 74% expect crypto prices to rise over the next 12 months. At the same time, nearly half said recent volatility has pushed their firms to place greater emphasis on risk management, liquidity and position sizing.

That mix of confidence and caution points to a maturing market, said David Duong, Coinbase’s head of institutional research.

“People are still interested in crypto,” Duong said in an interview. “They want to see tighter risk controls, but they want to stay allocated.”

The findings suggest institutions are no longer treating crypto as a short-term trade. Instead, many are building more permanent operating models around the asset class, with a heavier focus on governance, compliance and operational resilience.

One clear example is how institutions now prefer to access the market. The survey found that 66% of respondents get exposure through spot crypto exchange-traded funds (ETFs) and 81% prefer spot exposure through a registered vehicle. Duong said that does not mean exchange-traded products are only a temporary step before institutions move fully on-chain.

“I don’t think it’s just a transitional vehicle,” he said. “It caters to a certain segment of the investor community.” Still, he added that as the market develops, more institutions may want exposure to the underlying assets directly rather than only through fund wrappers.

Regulation remains the biggest tension in the market. Among respondents planning to increase holdings, 65% said greater regulatory clarity was a key driver, yet 66% also called regulatory uncertainty a primary concern when investing in digital assets.

That contradiction could become important if clearer rules emerge. “Regulatory clarity is acting as both the driver, but also the obstacle,” Duong said.

Recent developments around the proposed Digital Asset Market CLARITY Act have added urgency to that dynamic. The bill, which aims to define how crypto assets are regulated in the U.S., would clarify the roles of the SEC and CFTC while setting rules for stablecoins and market structure. While the legislation has yet to pass, policymakers and regulators have signaled growing support for a clearer framework, and parallel guidance from agencies like the Office of the Comptroller of the Currency has begun to outline how banks can engage with digital assets.

For institutions, that evolving backdrop is critical: clearer rules could unlock broader participation, while continued uncertainty remains a key constraint on capital entering the space.

The survey also found growing interest in stablecoins and tokenization, two areas increasingly seen as practical infrastructure rather than speculative bets. Eighty-six percent of respondents said they already use stablecoins or are interested in using them, with top use cases including T+0 settlement and internal cash management and money movement. Meanwhile, 63% said they are very interested in investing in tokenized assets, and more than 60% expect tokenization to significantly affect trading, clearing and settlement within three to five years.

Custody has also moved higher on the priority list. The share of respondents citing regulatory compliance as a key factor in selecting a custodian rose to 66% from 25% a year earlier. The importance of security and key-signing protocols jumped to 66% from 8%.

Duong said that shift reflects how institutions are thinking about crypto differently as use cases expand beyond trading.

“Compliance and security are now the top priorities,” he said. “Cost, interestingly enough, has fallen to the bottom of the list.”

For Coinbase, the message is that institutions still want crypto exposure, but only with stronger guardrails. For the broader market, the survey suggests the next phase of adoption may depend less on enthusiasm alone and more on whether the industry can deliver the controls large investors now expect.