Wealth Managers Maintain Crypto Allocations Amid Market Decline
- A survey of 15 wealth managers revealed none reduced their crypto allocations during a roughly 50% market decline from October to April.
- Total crypto allocations among respondents ranged from 0.5% to 13%, with most holding between 1% and 2%.
- All organizations that owned crypto held bitcoin, viewing it as a store of value similar to gold.
- Ethereum and Solana were held selectively, with institutions generally maintaining smaller positions and varying investment rationales.
- Nearly every surveyed organization utilized or planned to use spot ETFs for crypto exposure, citing benefits like lower costs and easier rebalancing.
The findings indicate a strong institutional commitment to cryptocurrency investments, even during significant market downturns, with bitcoin remaining the dominant asset in portfolios. Factors such as secure custody and governance risks continue to influence allocation decisions.
Overall, the survey highlights that despite volatility, institutions are maintaining or increasing their investments in cryptocurrencies like bitcoin, which accounted for about 80% of some portfolios.
