Investors Shift Funding From DeFi to Core Crypto Infrastructure
A CfC St. Moritz survey of 242 senior crypto investors, executives, regulators and family offices shows a clear shift in capital priorities toward core crypto infrastructure. Eighty-five percent of respondents now prioritise funding for custody, clearing, stablecoin rails, tokenisation frameworks and other infrastructure over DeFi, compliance or cybersecurity. Respondents identified liquidity shortages, thin market depth and weak settlement systems as the main barriers to institutional adoption in 2026. Around 84% judged the global macro backdrop to be neutral-to-favourable for crypto growth, but many said current market plumbing cannot yet support large-scale capital. Expectations for innovation in 2026 remain positive but more execution-focused and less exuberant than a year earlier. The survey also noted improved sentiment toward the US regulatory environment — now ranked second after the UAE — citing clearer rules and stablecoin legislation. Separately, several large family offices are redirecting capital toward artificial intelligence strategies, reducing marginal allocations to crypto. For traders: the shift suggests capital flows may concentrate on exchanges, custody providers, settlement and liquidity-layer projects rather than experimental DeFi products. Key SEO keywords: crypto infrastructure (appears multiple times), DeFi, institutional adoption, liquidity, settlement, market depth, CfC St. Moritz.
Neutral
This survey points to a reallocation of capital from speculative DeFi products toward core infrastructure (custody, clearing, settlement, stablecoin rails and tokenisation). For direct price impact on broad crypto markets the effect is neutral: improved infrastructure spending supports long-term institutional participation and market maturity, which is bullish structurally, but it does not immediately translate into higher token prices — especially for DeFi tokens, which may see reduced investor appetite. Short-term volatility could rise around funding announcements or if liquidity constraints persist, but the overall message is execution-focused and risk-reducing for institutions. Traders should watch funding flows into infrastructure tokens/projects and on-chain liquidity metrics and order-book depth; these are likely to influence market stability more than broad macro sentiment, which the survey rates neutral-to-favourable. Improved US regulatory clarity may remove tail risks over time, supporting gradual capital inflows rather than a sharp price rally.