Fund Managers Boost BTC Exposure as Crypto Sentiment Rebounds: CoinShares

Fund managers are warming back up to digital assets, with Bitcoin continuing to dominate allocation preferences even as broader crypto sentiment improves, according to a new survey by CoinShares.

The April survey gathered responses from 26 institutional investors overseeing a combined $1.3 trillion in assets under management. Allocations to digital assets remain relatively modest, at around 1%, reflecting what CoinShares described as “typical entry sizing” in the current de-risking environment.

“Bitcoin remains the digital asset with the most compelling growth outlook,” CoinShares head of research James Butterfill wrote in the report. Sentiment toward Ether (ETH) and Solana (SOL) also improved modestly compared with previous quarters.

According to the survey, around 32% of respondents have already invested in Bitcoin (BTC) and 25% have already allocated to Ether.

The findings suggest institutional investors are gradually increasing exposure to crypto amid improving market sentiment, growing adoption of exchange-traded funds (ETFs) and a more favorable regulatory backdrop.

At the same time, respondents identified internal restrictions and regulatory uncertainty as the main barriers preventing broader adoption. The survey also pointed to a shift away from “legacy altcoins” and toward newer decentralized finance protocols and emerging blockchain sectors.

Fund managers identified Bitcoin as having the strongest growth outlook among digital assets, followed by Ether and Solana. Source: CoinShares

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Institutional inflows continue to build as sentiment improves

The survey’s upbeat tone aligns with broader institutional flow trends. CoinShares data recently showed digital asset investment products recording several consecutive weeks of inflows, led primarily by Bitcoin demand.

Crypto exchange-traded products attracted $1.2 billion in inflows through April 27, marking the fourth straight week of gains and bringing total inflows during that stretch to $3.9 billion.

The momentum has extended into early May. US spot Bitcoin ETFs recorded nearly $1 billion in net inflows this week as BTC climbed back above $80,000, according to SoSoValue data.

Bitcoin ETF inflows have risen since last Friday. Source: SoSoValue

The inflow trend also aligns with a recent survey by Coinbase and EY-Parthenon, which found that 73% of institutional investors plan to increase their digital asset exposure this year, with most expecting crypto prices to rise over the next 12 months.

The launch of spot Bitcoin ETFs in the United States in January 2024 has been widely viewed as a turning point for institutional adoption. The ETF structure has also helped reduce operational friction for institutions by offering regulated exposure to Bitcoin without requiring direct custody of digital assets.

Related: Crypto Biz: Capital has no consensus

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