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The cryptocurrency market in Switzerland and Liechtenstein has experienced significant growth over the past year, according to a new study conducted by the Lucerne University of Applied Sciences and Arts (HSLU).

Led by Professor Thomas Ankenbrand, the study reveals that the managed assets in indirect investment products like funds or exchange-traded products in these countries increased to around CHF 15 billion, marking a rise of about two-thirds within twelve months. This growth is a clear indication of the increasing importance of cryptocurrency in the region.

One of the key findings of the study is the growing engagement of institutional investors such as banks, family offices, and industrial companies in the crypto market. Larger trading volumes on weekdays and longer holding periods suggest that these institutions are increasingly active players in the market.

The study also highlights the expansion of the ecosystem in Switzerland and the Principality of Liechtenstein. The number of companies offering crypto-asset services grew from 359 to 407 over the same period. More than 60% of these companies are based in the cantons of Zug and Zurich, reflecting the growing acceptance of cryptocurrencies in these regions.

Another interesting finding is the role of Bitcoin in investment portfolios. The study suggests that Bitcoin has functioned more as a complement to gold rather than a substitute. Portfolios combining traditional assets, gold, and Bitcoin achieved the best risk-adjusted performance.

Tokenised assets are also attracting interest from the financial sector. In Switzerland, tokenised bonds and equities are already being issued and traded via regulated platforms. CHF-based stablecoins have not yet gained traction, but tokenised balance sheet items such as treasury bonds could offer new applications.

However, the study also points out the need for further analysis as many portfolio optimisation approaches rely on historical data. The rapidly evolving nature of the crypto market means that new strategies will need to be developed to accurately predict market trends.

Crypto assets have gained importance over the past twelve months, and the study suggests that this growth is due to both rising prices and broader acceptance of crypto assets as a separate asset class. As the market continues to grow and mature, it is likely that we will see even more institutional engagement and innovative applications of cryptocurrency technology.