Bank of America Survey Reveals Institutional Hesitation Toward Crypto

Bank of America's August survey of 211 fund managers overseeing $504 billion in assets reveals a stark reluctance toward cryptocurrency exposure. A staggering 97% of respondents reported zero allocations to digital assets. Among the minority holding crypto, average exposure stood at just 3.2% of portfolios—dropping to 0.3% when weighted across all participants.

The findings suggest institutional investors continue viewing crypto as a speculative novelty rather than a strategic asset class. ETF analyst Eric Balchunas questioned the managers' market judgment, noting their similar hesitation toward US markets in Q1 2025 preceded a strong rebound. "Aren't these the same 'global managers' who said they were selling America in Q1?" he remarked.

This institutional skepticism persists despite growing crypto integration in mainstream finance, including recent 401(k) offerings. The survey highlights the widening gap between crypto's retail adoption and its acceptance by traditional money managers.