Bullish Crypto Fails to Crack Institutional Skepticism—Why Fund Managers Still Won’t Bite in 2025

Wall Street’s crypto cold shoulder continues—even as Bitcoin flirts with new highs.

Fund managers are still treating digital assets like a Vegas side bet, according to a new survey. The data shows institutional players haven’t budged on their crypto aversion despite 18 months of bullish momentum.

The Institutional Standoff

While retail traders pile into altcoins, big money remains sidelined. Compliance headaches, volatility, and that pesky 'lack of intrinsic value' argument keep pension funds and endowments away. 'We’ll reconsider when it stops behaving like a meme stock,' muttered one anonymously surveyed asset allocator.

Meanwhile, in Crypto-Land…

DeFi protocols keep innovating, layer-2 solutions slash fees, and Bitcoin ETFs now trade beside S&P 500 products. None of it moves the needle for the suits. 'They’ll FOMO in at $100K BTC—right after lecturing us about risk management,' quipped a pseudonymous crypto trader.

The takeaway? Crypto’s institutional adoption story remains stuck in first gear—proving once again that traditional finance moves at the speed of a fax machine.

Commenting on these findings, Bloomberg ETF analyst Eric Balchunas suggested that the low exposure may reflect past missteps from these funds. He noted that some managers who had previously made poor calls on broader markets might be exercising extra caution towards the fast-growing industry.

According to him:

“Aren’t these the same ‘global managers’ who said they were selling America in Q1 ? Maybe they should start surveying people with better returns.”

Meanwhile, other industry players noted that the low participation rate could indicate untapped potential in the crypto market.

Frank Chapparo, the head of content at GSR, stated:

“Wall Street has barely gotten off zero and Bitcoin is still $120,000. We are going to absurdly higher.”

Historically, digital assets have offered strong returns but come with significant volatility. This risk factor appears to be why many institutional investors have limited their crypto holdings.

Despite this cautious approach, institutional interest in cryptocurrencies is growing. Over the past year, investors have increasingly gained exposure through shares of crypto companies and crypto-focused exchange-traded funds (ETFs).

Additionally, there has also been the advent of Bitcoin-focused treasury companies that have added a significant amount of the top crypto to their balance sheets.

At the same time, the US regulatory environment is also encouraging broader adoption of the emerging industry.

For context, President Donald TRUMP recently signed an executive order allowing digital assets to be included in 401(k) retirement plans. Industry players believe this step could prompt fund managers to reconsider their positions and increase crypto allocations.