Fund managers still reluctant on crypto, BofA survey shows
- More than half of global investors have no structural exposure to cryptocurrencies, with allocations remaining negligible despite the market’s size and influence, Bank of America’s latest Global Fund Manager Survey has found.
The survey, conducted in September, revealed that 67% of fund managers have zero allocation to digital assets such as bitcoin (BTC-USD), ether (ETH-USD), ripple (XRP-USD), and tether (USDT-USD). This underscores that, for many institutional investors, crypto remains outside the bounds of traditional portfolio construction.
While a majority remain absent, a small minority have dipped a toe into the market. Just 3% of respondents reported a 2% allocation, another 3% hold 4%, and only 1% have exposure at 8% or more.
Weighted exposure tiny:
- Across all respondents, the weighted average allocation to crypto stands at 0.4% of assets under management. Even among the subset of fund managers who have ventured into digital assets, the weighted allocation is modest, averaging 3.7%.
- That level of commitment contrasts sharply with traditional asset classes such as equities, bonds, and cash, where allocations are measured in double digits.
Structural hesitation:
- Perhaps more striking is the structural view on crypto. Eighty-four percent of survey participants said they have not started to structurally allocate to the asset class.
- Only 8% said they had — suggesting that most fund managers view crypto positions, if any, as tactical or opportunistic rather than part of long-term investment strategy.
Broader context
The findings come at a time when crypto adoption continues to expand in retail markets, regulatory frameworks are slowly maturing, and a growing number of products — such as spot bitcoin exchange-traded funds (ETFs) — are offering investors regulated ways to access digital assets. Yet institutional skepticism lingers, centered on volatility, regulatory uncertainty, and questions about crypto’s role in diversified portfolios.
For now, Bank of America’s survey highlights a wide gap: while crypto markets trade in the trillions, professional fund managers remain largely on the sidelines.
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This article was written by Eamonn Sheridan at investinglive.com.