While the current Bitcoin (BTC) and cryptocurrency cycle is driven by institutional investors, unlike other cycles, a new survey has yielded surprising results.
A recent survey by Bank of America (BofA), one of the largest banks in the US, revealed that 97% of institutional investors are staying away from cryptocurrencies.
According to data shared by ETF Store founder Nate Geraci, the vast majority of global fund managers still operate with zero exposure to cryptocurrencies.
A significant portion of institutional investors participating in the BoF survey stated that they do not hold any cryptocurrencies in their portfolios.
In contrast, while a large segment reported crypto investments, the average portfolio allocation among the small segment that invested was only 3.2%.
Finally, investor sentiment for stocks improved significantly in the August survey, which found that a net 14% of institutional investors now own more stocks than their index counterparts, compared to just 2% a month earlier.
Experts list the continuing uncertainty surrounding US regulations, high volatility, and the search for other safe havens as reasons for institutional fund managers’ limited interest in cryptocurrencies.
*This is not investment advice.