Bank of America Survey: 97% of large funds are still on the sidelines of cryptocurrency

A new survey from Bank of America (BofA) shows that institutional investors have not really engaged in the crypto market, despite the increasing popularity in traditional finance.

The August survey by BofA was conducted with 211 fund managers, controlling total assets worth $504 billion. The results show that the majority have no exposure to the crypto market at all. Only a small percentage hold cryptocurrencies, with an average allocation of 3.2% in their portfolios. When averaged across the entire survey group, this figure drops to just 0.3%.

ETF analyst Eric Balchunas commented that these managers may be lacking vision. He recalled how they misjudged when they sold off US assets in Q1 2025, a time when the US market later rebounded strongly. "Aren't these the 'global managers' who said they would pull out of the US in Q1? Perhaps they should survey those who have better results," Balchunas sarcastically remarked.

Meanwhile, the US financial market has made positive strides with crypto. Recently, some 401(k) pension funds have added Bitcoin as an investment option for savers. However, only 9% of fund managers reported having a structural allocation to crypto, indicating Wall Street's clear caution.

In contrast, the August survey showed that sentiment towards stocks improved significantly. The net percentage of managers who are "overweight" on global stocks rose to 14%, up from just 2% last month. Allocation to emerging market stocks also reached a peak since the beginning of 2023, while U.S. equities continue to be undervalued due to concerns about excessive valuations.

The macro picture and defensive mentality

BofA's survey also reflects the general caution in the strategy of institutional investors.

• 41% forecast global growth will weaken in the next 12 months ( up from 31% in July.
• 18% are concerned about higher inflation compared to 6% last month.
• The cash holding level remains at 3.9%, close to the 4% threshold that BofA considers a signal to sell U.S. stocks.

Regarding the biggest risks, 29% are concerned about a global recession due to the trade war, 27% fear that inflation will disrupt the Fed's interest rate cuts, and 20% warn that rising bond yields are becoming uncontrollable.

Crypto is still on the sidelines

Despite the increasing signs of widespread acceptance, cryptocurrencies remain outside the focus of large fund portfolios. According to Ryan Rasmussen, Director of Research at Bitwise, this average allocation of 3.2% will eventually force fund managers to rethink, especially as crypto is showing superior growth rates compared to the traditional market.

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