Institutional investors are expected to ramp up allocations to cryptocurrencies, as digital assets are increasingly viewed as a promising asset class, according to a latest report. 

Crypto exchange OKX, in its analysis, said that cryptocurrencies such as bitcoin and ether, non-fungible tokens and tokenised private funds and securities like bonds and stocks are turning out to be increasingly attractive among institutional investors. 

"Digital assets are rapidly being adopted in investment portfolios. The trend will only intensify if we see advancements in blockchain technology, enhanced regulatory clarity and uptake of innovative digital solutions like tokenised real-world assets," said Lennix Lai, Chief Commercial Officer of OKX. 

Popularity of cryptocurrencies rising

According to the report, 51 percent of the institutional investors who took part in the survey were looking into spot crypto allocations. 

On the other hand, 33 percent were considering staking of digital assets, while 32 percent have an affinity towards crypto derivatives. 

The report further noted that 69 percent of institutional investors are looking to increase their allocations in digital currencies in the next two or three years. 

"From venture capital and pension funds to crypto hedge funds, there is a growing consensus among institutional investors that digital assets, including cryptocurrencies, have an important place in asset allocation," said OKX in the report. 

Rate cut speculations and Crypto slump

Earlier this week, the crypto market saw over $313 million in liquidations after Bitcoin fell below $60,000, as a potential rate probability cut affected investor confidence. 

Ethereum topped the liquidations chart with over $100 million, including $93.52 million in liquidated long positions.

Ethereum was followed by Bitcoin, as its liquidations chart touched $94 million, with $85.97 million from long positions and $8.87 million from short positions.