- 75% of fund managers reported zero crypto exposure in BofA’s August survey, with average allocations across the group at just 0.3%.
- ETF analyst Eric Balchunas criticized institutional investors for missing opportunities, comparing it to their Q1 2025 misjudgment of US markets.
- Despite growing adoption like Bitcoin in 401(k)s, only 9% of managers hold crypto, with most preferring equities amid macroeconomic caution.
According to Bank of America’s August survey, institutional investors continue to keep crypto on the sidelines. A staggering 75% of fund managers reported zero exposure to digital assets, and those who do hold crypto averaged just 3.2% allocations in their portfolios. When spread across the entire survey group, that number drops sharply to only 0.3%. This lack of conviction stands in sharp contrast to crypto’s increasing integration into mainstream finance.
Balchunas Calls Out Missed Opportunities
ETF analyst Eric Balchunas didn’t mince words when reacting to the survey. He pointed out that these same managers misjudged US markets earlier this year, offloading positions in Q1 2025 just before a strong rebound. “Maybe they should start surveying people with better returns,” he quipped, highlighting what he sees as a blind spot when it comes to digital assets.
Institutions Hesitant While Adoption Grows
Despite developments like 401(k) plans introducing Bitcoin exposure for retirement savers, only 9% of fund managers have made any structural allocation to crypto. Instead, sentiment leaned toward equities, with global equity allocations hitting their highest levels in over a year. Emerging markets also saw renewed interest, though US equities remained underweighted due to overvaluation concerns.
Macro Uncertainty Keeps Risk Appetite Low
The survey also reflected broader caution in portfolios. Roughly 41% of respondents expect weaker global growth over the next year, while inflation fears ticked higher. Cash levels stayed close to BofA’s “sell signal” threshold, underscoring risk aversion. Top risks cited included a global recession sparked by trade tensions, inflation stalling Fed rate cuts, and a disruptive rise in bond yields. For now, crypto remains a fringe allocation—though analysts like Ryan Rasmussen of Bitwise believe fund managers will eventually be forced to rethink their “3.2% problem.”
