A recent survey by Bank of America indicates that despite the recent surge in bullish market momentum, most global fund managers are still hesitant to dive into the world of cryptocurrencies. The survey, involving 211 fund managers overseeing a total of $504 billion in assets, reveals that a significant majority, around three-quarters of respondents, have yet to invest in crypto at all. For those fund managers who do hold digital assets in their portfolios, the allocations remain relatively small. On average, these managers allocate just 3.2% of their portfolios to cryptocurrencies. Further breaking it down, 6% of managers hold around 2% exposure, 2% allocate 4%, and only 1% report allocations exceeding 8%. Across the entire group, crypto holdings represent a mere 0.3% of assets under management. Bloomberg ETF analyst Eric Balchunas suggested that the cautious approach towards crypto investments could stem from past investment mistakes by some fund managers in the broader markets. Balchunas hinted that these managers might be treading carefully in the rapidly growing crypto industry as a result. He remarked, “Aren’t these the same ‘global managers’ who said they were selling America in Q1? Maybe they should start surveying people with better returns.” Despite the reserved stance of fund managers, industry experts see potential in the crypto market that remains untapped. Frank Chapparo, the head of content at GSR, believes that Wall Street’s current minimal involvement in Bitcoin, despite its high value, indicates a potential for substantial growth. Chapparo expressed, “Wall Street has barely gotten off zero and Bitcoin is still $120,000. We are going to absurdly higher.” While digital assets have historically shown strong returns, their volatility has kept many institutional investors wary, leading to limited crypto holdings. However, institutional interest in cryptocurrencies is on the rise, with investors increasingly gaining exposure through crypto-related shares and exchange-traded funds (ETFs). Moreover, the emergence of Bitcoin-focused treasury companies adding significant amounts of the top crypto to their balance sheets indicates a shifting landscape. The regulatory environment in the US is also fostering broader adoption of cryptocurrencies. President Donald Trump’s recent executive order allowing digital assets to be included in 401(k) retirement plans is seen as a pivotal step towards encouraging fund managers to reconsider their positions and potentially increase their crypto allocations.
Global Fund Managers Remain Cautious Despite Crypto Market Momentum, Survey Reveals
