Why are institutional investors changing their approach to crypto?

Institutional investors are increasingly treating crypto as a portfolio diversification tool rather than a speculative trade. CoinShares Research found diversification and client demand now account for 63% of institutional crypto allocations.

How much crypto exposure do major fund managers currently hold?

The CoinShares survey showed a median crypto allocation of 1% among surveyed institutions. Across the $1.3 trillion in combined assets under management, that implies roughly $13 billion in baseline crypto exposure.

Why has speculation become less important for crypto investing?

CoinShares head of research James Butterfill said institutional investors are becoming more disciplined and risk-focused. Speculation as the primary reason for crypto exposure has reportedly dropped from 36% two years ago to 15%.

Which cryptocurrencies are institutions favouring most?

Bitcoin and Ether still dominate institutional portfolios, accounting for 58% of responses in the survey. However, newer DeFi-linked assets such as Aave, Sui and Tron are gaining interest while Cardano and Polkadot lose ground.

Why is Strategy considering selling Bitcoin?

Strategy said it may sell part of its Bitcoin holdings to help fund dividend obligations. The company is facing financial pressure after reporting a $12.54 billion quarterly loss tied largely to falling Bitcoin prices.

How much Bitcoin does Strategy currently own?

Strategy holds around 818,334 Bitcoin, making it one of the world’s largest corporate Bitcoin holders. The company built its treasury strategy around using leverage to accumulate BTC over several years.

Why is Michael Saylor’s potential Bitcoin sale significant?

Saylor has long promoted a “never sell” approach to Bitcoin accumulation. Any sale would mark the first time since 2020 that Strategy has openly considered reducing its BTC holdings.

What caused Strategy’s massive quarterly loss?

The company booked a $14.46 billion unrealised markdown on its Bitcoin holdings during the quarter. Bitcoin’s price decline significantly reduced the paper value of Strategy’s crypto reserves.

Fund managers favour diversification as Strategy weighs Bitcoin sales

Written by Heidi Cuthbert Published May. 7 2026Last Updated May. 7 2026

Institutional investors are increasingly approaching cryptocurrencies as portfolio diversification tools rather than speculative trades, according to a new survey published by CoinShares Research.

The quarterly survey covered 26 fund managers overseeing a combined $1.3 trillion in assets under management and found that diversification and client demand now account for 63% of institutional crypto allocations.

CoinShares head of research James Butterfill said speculation has fallen sharply as the primary reason institutions invest in digital assets, declining to 15% from 36% two years ago.

The report showed that the median crypto allocation among surveyed institutions remained at 1%, representing roughly $13 billion in estimated baseline exposure across the respondent group.

Bitcoin and Ether accounted for 58% of portfolio responses, while older alternative cryptocurrencies including Cardano and Polkadot lost favour compared with newer decentralised finance-linked assets such as Aave, Sui and Tron.

The findings come as Strategy, formerly MicroStrategy, indicated it may sell some of its Bitcoin holdings for the first time since 2020 as pressure builds on its leveraged treasury model.

During the company’s first-quarter earnings call, executive chairman Michael Saylor said Strategy could potentially sell part of its 818,334 Bitcoin reserve to help fund dividend obligations.

“We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it,”

Saylor said.

Strategy reported a record $12.54 billion quarterly net loss after booking a $14.46 billion unrealised markdown on its Bitcoin holdings, while the company faces approximately $1.5 billion in annual dividend obligations.

The CoinShares survey suggested institutional investors are increasingly favouring smaller, risk-managed crypto exposure strategies as internal compliance rules replace regulatory uncertainty as the main barrier to wider digital asset allocation.

At the time of reporting, Bitcoin price was $81,590.82.