• A sweeping 84% of institutional fund managers have yet to initiate any structural crypto investments, according to Bank of America's latest survey.
  • The average crypto allocation across all respondents is a mere 0.4%, with a significant 67% holding no exposure whatsoever.
  • The findings highlight a stark institutional-retail divide, contrasting sharply with surging retail adoption and plans for increased investment.

A deep-seated institutional caution toward cryptocurrency persists, according to the findings from Bank of America's September Global Fund Manager Survey. The poll, which captures sentiment from managers overseeing hundreds of billions in assets, reveals that the vast majority of professional money managers continue to watch the crypto revolution from the sidelines.

The data shows that a commanding 84% of respondents have not begun any structural investments in digital assets. Among those who do hold crypto, the allocations are minuscule. Only 3% of managers reported a 2% allocation, another 3% hold 4%, and a mere 1% have an allocation of 8% or more. When weighted across the entire survey pool, the average allocation drops to just 0.4%, underscoring the asset class's peripheral status in institutional portfolios.

This institutional hesitancy stands in stark contrast to rapidly growing retail adoption. Recent data indicates that approximately 28% of American adults, or about 65 million people, now own cryptocurrencies—a figure that has nearly doubled since 2021. Furthermore, sentiment among retail investors appears bullish, with 67% of current owners planning to buy more in 2025 and 14% of non-owners intending to make their first purchase.

The disconnect suggests that institutional adoption is following a different and slower trajectory than retail enthusiasm. This caution comes despite a more favorable regulatory environment, including the recent repeal of the SEC's SAB 121, an accounting rule that had previously made it difficult for traditional banks to custody crypto assets. One analyst, who asked not to be named because the discussions are private, suggested that for many large funds, "the operational and reputational risks still outweigh the potential alpha, for now."

Bank of America did not immediately respond to a request for further comment on the survey's methodology or findings. The persistent gap indicates that while crypto has broken into the mainstream for retail investors, its journey into the core of institutional asset allocation is still in its very early innings.