Wall Street Increases Exposure to Crypto, Average Fund Manager Lags Behind

Some of the largest players in the world are investing billions in bitcoin ETFs. Yet, the average professional asset manager is barely allocating funds. What is the reason for this?

Wall Street and global institutions have dramatically increased their exposure to bitcoin in the second quarter, investing billions in spot ETFs like BlackRock’s (IBIT) and related ‘crypto stocks’.

SEC filings reveal that heavyweights like Brevan Howard, Goldman Sachs, Harvard, Wells Fargo, Jane Street, and even the Norwegian sovereign wealth fund have strengthened their positions, signaling a growing comfort with bitcoin as a core allocation.

Some of the most significant moves include:

• Brevan Howard nearly doubled its stake in IBIT to 37.9 million shares worth $2.6 billion, making it one of the largest institutional owners.
• Goldman Sachs reported $3.3 billion in IBIT and Fidelity’s Wise Origin Bitcoin Trust (FBTC), plus $489 million in Ethereum’s ETHA trust.
• Harvard disclosed a stake of $1.9 billion in IBIT, while Mubadala from Abu Dhabi still holds $681 million.
• Wells Fargo quadrupled its holdings in IBIT to $160 million, along with a small stake in GBTC.
• Cantor Fitzgerald exceeded $250 million in IBIT with increased exposure to MicroStrategy (MSTR), Coinbase (COIN), and Robinhood (HOOD).
• Trading giant Jane Street now owns $1.46 billion in IBIT, making it the largest position after Tesla.
• The Norwegian sovereign wealth fund indirectly holds 7,161 bitcoins ($841 million) through equity stakes in MSTR, COIN, XYZ, and others, representing a 192% increase year-over-year.

However, the average professional asset manager in the U.S. is barely allocating funds to crypto-related products.

A Bank of America survey showed that the average fund manager has only 0.3% allocated to cryptocurrencies. An astonishing 75% have 0% exposure.

Institutions are clearly piling into bitcoin right now, including the biggest names in finance, academia, and even national states.

The sheer scale of these positions ($2 billion for Brevan Howard, $3 billion for Goldman, $1.9 billion for Harvard) confirms bitcoin as an institutional-grade asset.

It is becoming clearer that ETFs are proving to be a pass, offering clean, regulated exposure through familiar structures. Yet, retail investors are asleep, and their fund managers are not helping.

The fact that 75% of fund managers have no exposure to crypto at all is not surprising, but at the same time, it is staggering. However, the good news is that they are coming.

The more big names and institutions pile in, the ‘safer’ it is for the average fund manager to recommend crypto as an investment. It is much easier to recommend safe, standard, and consensus options and collect fees than to grapple with and present contrary, conviction calls.

Crypto will not be in opposition for long, and the turn of fund managers is just a matter of time.