Investor portfolio allocations to cryptocurrency have hit a yearly high of 1.8% as of April 29, according to a recent report published by CoinShares. The increase in allocation is attributed to recent price movements and improving sentiment in the crypto market. The report’s findings are based on survey data and supporting 13F filings, providing a snapshot of how institutions, individuals, and wealth managers across asset classes are positioning themselves.
Institutional portfolios have shown an average crypto allocation of 2.5%, signaling a notable shift towards greater on-chain exposure. While individual investors still maintain the highest absolute weighting in crypto, there is a growing commitment among institutions and family offices to include digital assets in their portfolios.
Bitcoin continues to dominate allocations among crypto holdings, with 63% of survey respondents confirming exposure, up from 48% in January. Ethereum follows in second place with nearly 20%, while Solana holds 17%. Other altcoins like Polkadot, Cardano, and XRP have little to no presence in investor portfolios, indicating a trend towards a narrower focus on Bitcoin and a move away from broader diversification within crypto holdings.
Investors are reassessing altcoin risk and showing increased comfort with Bitcoin’s liquidity, infrastructure, and perceived regulatory clarity. Despite this, Ethereum remains relevant, and there is growing interest in alternatives beyond the top two digital assets.
Diversification is cited as the primary reason for including crypto in portfolios, followed by interest in distributed ledger technology and speculative motives. While client demand has decreased compared to the previous quarter, speculative interest has risen, suggesting a reevaluation of crypto’s role in multi-asset portfolios.
Volatility and regulatory uncertainty remain top concerns for investors entering the crypto space. Despite Bitcoin showing lower volatility than equities recently, it remains a barrier to new investments. Regulatory uncertainty is also a significant concern, along with reputational risk and weak fundamentals.
The report highlights a broader macroeconomic backdrop influencing investor sentiment, including concerns about tariff-related economic fallout and fears of stagflation. While some view the Federal Reserve’s current policy direction as appropriate, a substantial portion remains undecided.
Overall, the report provides valuable insights into the evolving landscape of crypto investments and the factors shaping investor decisions in the digital asset space.