Institutional investors are rapidly shifting their attitudes toward cryptocurrencies. According to the latest quarterly survey by CoinShares Research, digital assets are increasingly held by institutions for diversification purposes rather than speculation. Responses from 26 fund managers responsible for $1.3 trillion in assets reveal that diversification and client demand now play a decisive role in allocating funds to crypto, cited by 63 percent of participants—compared with just 36 percent two years ago.
Speculation gives way to stability
Until recently, fund managers primarily invested in crypto for speculative purposes. However, the latest research shows this trend has dropped off significantly, with speculation accounting for just 15 percent of reasons cited for holding digital assets. CoinShares Research Director James Butterfill commented, “Two years ago, speculation was the main reason fund managers held digital assets, but this has now decreased to only 15 percent.”
Two years ago, the main reason for holding digital assets was speculation. Today, that share has dwindled to just 15 percent, according to James Butterfill.
The survey also found that, on average, institutions allocate around 1 percent of their portfolios to crypto assets. Given the scale of their portfolios, this means the surveyed funds alone hold an estimated $13 billion in digital assets.
Bitcoin and Ethereum lead institutional allocations
Bitcoin and Ethereum remain dominant in institutional portfolios, together making up 58 percent of crypto holdings. While interest in alternative coins like Cardano and Polkadot has waned compared to previous years, demand for DeFi-focused tokens such as Aave, Sui, and Tron has grown. According to a CFRA Research note, the value of crypto assets under Coinbase custody jumped 95 percent year-on-year to $516 billion, driven largely by stablecoins and derivatives.
A separate study by Bitwise and VettaFi found that by 2026, 99 percent of financial advisors with crypto exposure plan to maintain or increase their crypto investments. In fact, 64 percent of advisors currently hold more than 2 percent of client portfolios in digital assets. CoinShares’ own report confirms that institutional behavior among asset managers mirrors the crypto-friendly trends seen at the advisor level.
Strategy’s partial sale decision tests institutional approach
Amid these institutional shifts, Michael Saylor’s company Strategy made headlines this week. Holding an estimated 818,000-plus BTC, the firm announced a softening of its historical “never sell” stance after reporting quarterly results, stating it may sell part of its bitcoin holdings to pay dividends. Michael Saylor added, “We will probably sell a small amount of bitcoin, mainly to send a message to the market.”
We will probably sell bitcoin to pay dividends, and mainly to signal something to the market, according to Michael Saylor.
This statement marks a significant reversal from the company’s long-held strategy of not selling bitcoin under any circumstances. Strategy announced a net quarterly loss of $12.54 billion, attributing nearly all of it to bitcoin-related value declines from the $14.46 billion in digital assets held on its balance sheet. The company also disclosed an annual dividend obligation of $1.5 billion and about 18 months of cash reserves.
These developments underscore a move among institutions toward more measured, diversified positions in crypto and a greater reluctance to rely on leveraged investment models. The main factor now limiting institutional crypto allocations is no longer regulatory uncertainty but instead internal compliance constraints.
CoinShares’ survey signals that a period marked by leverage is giving way to an era of increased discipline throughout the institutional investment landscape.
