Crypto Trust Paradox: Investors Seek Central Authority in Decentralized Markets, Wharton Study Finds

Consumer confidence in cryptocurrency is moving in unexpected directions, according to new research from the Wharton School that reveals a fundamental tension in how investors approach digital assets. The third annual Consumer Cryptocurrency Confidence Report, released this week, shows that despite crypto's foundational promise of decentralization, investors are increasingly gravitating toward centralized oversight and traditional institutional structures.

The finding matters for CFOs navigating corporate treasury decisions around digital assets. If retail investor sentiment is shifting toward wanting more regulation and institutional involvement—rather than the libertarian "be your own bank" ethos that originally defined the space—it suggests the market may be maturing in ways that make corporate participation more palatable to boards and audit committees.

The survey-based study, led by Wharton marketing professors Cait Lamberton, David Reibstein, and John Zhang, along with Martin Paul Fritze of Ludwig Maximilians University of Munich, tracks what they call the Consumer Cryptocurrency Confidence Index (c3i). This year's report, published February 23, identifies what the researchers describe as "non-linear trends" in how consumers think about crypto—meaning the trajectory isn't simply up or down, but shifting in more complex patterns.

Two findings stand out for finance leaders. First, the report notes increased price volatility in cryptocurrency markets, which isn't news in itself but matters when paired with the second finding: cryptocurrencies are showing "increased detachment from the stock market." For CFOs who've been treating crypto as just another risk asset correlated with tech stocks, that decoupling—if it holds—changes the portfolio math.

The researchers frame their central finding as "increased trust in centralized forces in a decentralized market." That's the paradox: investors say they want the benefits of cryptocurrency, but they're simultaneously expressing more confidence in traditional intermediaries and regulatory structures. It's a bit like buying a sports car specifically because it's fast and dangerous, then immediately asking for speed limiters and extra airbags.

The c3i represents the first systematic attempt to track consumer sentiment toward cryptocurrency over time using consistent methodology. This is the third annual iteration, meaning the researchers now have enough data points to identify trends rather than just snapshots. For an asset class that moves as quickly as crypto, having longitudinal data on investor psychology is increasingly valuable.

What the report doesn't answer—and what CFOs will want to know—is whether this centralization preference translates into actual behavior. Are investors moving money toward regulated exchanges and away from decentralized finance protocols? Are they buying Bitcoin ETFs instead of holding coins directly? The survey captures stated preferences, but the gap between what people say they want and what they actually do with their money can be substantial.

The timing is notable. This data was collected during 2025, a year that saw continued regulatory uncertainty in the United States and ongoing debates about how to classify and oversee digital assets. If consumer confidence is indeed shifting toward wanting more institutional involvement, that could accelerate regulatory frameworks that have been stuck in limbo.

For corporate finance teams, the implication is straightforward: the crypto market may be evolving toward structures that look more familiar, which could make it easier to justify treasury exposure or payment system integration. But the volatility finding is a reminder that familiarity doesn't mean stability. The asset class is still moving in ways that traditional risk models struggle to capture.