Wall Street Still Hesitant on Crypto, Bank of America Survey Reveals
A fresh survey by Bank of America highlights how little traditional finance has warmed up to digital assets, even as crypto adoption edges deeper into mainstream markets.
The poll, which captured the views of 211 portfolio managers responsible for a combined $504 billion, shows that most large investors continue to steer clear of cryptocurrencies. In fact, nearly all respondents reported no allocation to the asset class at all.
Numbers Tell the Story
Among the minority who did take positions, digital assets accounted for just 3.2% of their holdings on average. But when viewed across the entire group, the figure collapses to a token 0.3% exposure.
ETF analyst Eric Balchunas criticized the stance, pointing out that many of the same managers had wrongly abandoned U.S. assets in early 2025, only to watch domestic markets bounce strongly in the months that followed.
Stocks Regain Favor, Crypto Left Behind
Interestingly, the August edition of the survey revealed improving appetite for equities. A net 14% of managers said they were overweight global stocks — a sharp increase from July’s 2%. Exposure to emerging markets also rose to its highest level since early 2023. Meanwhile, U.S. equities remained under pressure, with managers citing valuation concerns.
Crypto, however, remained sidelined. Only 9% of those surveyed said they had a structural allocation to digital assets despite new signs of adoption — such as Bitcoin entering 401(k) retirement plans in the United States this month.
Macro Risks Dominate Outlook
Outside of digital assets, the survey underscored widespread caution in broader markets. Forty-one percent of respondents predicted weaker global growth over the next year, while inflation fears ticked higher. Rising bond yields, trade war tensions, and doubts over Federal Reserve policy were all cited as key risks.
Cash allocations held steady at 3.9%, hovering just under the 4% threshold BofA considers a warning signal for U.S. equities.
A Missed Opportunity?
Despite the reluctance, some market watchers argue that institutions are ignoring one of the fastest-growing sectors in finance. Ryan Rasmussen of Bitwise suggested that Wall Street may soon be forced to revisit its low exposure, noting that crypto’s performance continues to outpace traditional benchmarks.
For now, the survey suggests that even as stocks regain favor, crypto remains little more than an afterthought in institutional portfolios.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
