Fund Managers Increase Bitcoin Allocations as Sentiment Rebounds

Fund managers increased Bitcoin allocations as crypto market sentiment improved, CoinShares’ April survey found. The survey collected responses from 26 institutional investors overseeing about $1.3 trillion in assets under management and reported that 32% of respondents have invested in Bitcoin while average allocations to digital assets are roughly 1%.

The survey, conducted in April, asked investors about current exposure and outlook. Respondents cited internal restrictions and regulatory uncertainty as the main barriers to broader adoption of digital assets within their portfolios.

James Butterfill, head of research at CoinShares, wrote in the report: ‘Bitcoin remains the digital asset with the most compelling growth outlook.’ The report showed modest improvements in sentiment for Ether and Solana and indicated that about 25% of respondents have allocated to Ether. Managers ranked Bitcoin highest for growth potential, followed by Ether and Solana.

The report noted a shift away from older altcoins in favor of newer decentralized finance protocols and other emerging blockchain sectors. Managers expressed selective interest in projects tied to specific use cases rather than broad exposure to legacy tokens.

Institutional flows reflected the more positive tone. CoinShares data recorded several consecutive weeks of inflows into digital-asset investment products, led by Bitcoin demand. Crypto exchange-traded products attracted $1.2 billion in inflows through April 27, marking a fourth straight week of net gains and bringing total inflows in that period to $3.9 billion. Separately, SoSoValue data showed U.S. spot Bitcoin ETFs logged nearly $1 billion in net inflows in early May as Bitcoin rose above $80,000.

A separate survey by Coinbase and EY-Parthenon found 73% of institutional investors plan to increase digital-asset exposure this year, with most expecting prices to rise over the next 12 months. Respondents and market participants referenced the January 2024 launch of U.S. spot Bitcoin ETFs as expanding institutional access by offering regulated exposure without requiring direct custody of the underlying assets.

CoinShares emphasized that allocations remain small for many managers and that regulatory frameworks and internal policies continue to constrain broader adoption. The survey results reflect gradual increases in exposure rather than large-scale crypto holdings.