Major US Fund Managers Talk About Altcoins: Will They Invest in Altcoins?

Institutional investors are increasingly looking beyond Bitcoin, according to a new survey that found 40% of fund managers are willing to invest in 10 or more altcoins.

The findings, published by SP Global’s financial analysis division Crisil Coalition Greenwich, suggest that near-complete adoption of digital assets among fund managers could be on the horizon.

The report notes a significant shift in institutional sentiment, noting that many firms are comfortable trading a small number of crypto assets, but 40% of asset managers overseeing funds over $100 million have expanded their exposure to altcoins.

“This is a major shift from years ago,” the report says, pointing to the growing risk appetite for cryptocurrency investments among large financial firms.

The U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs last year played a major role in this shift. These ETFs attracted $107 billion in assets under management in a single year, setting a record for the ETF market.

The report suggests that fund managers are moving beyond a single crypto asset and exploring more diversified investment strategies, including:

Multi-asset crypto ETFs that can offer exposure to a basket of cryptocurrencies.

Direct ownership of digital assets as well as crypto derivatives.

Moving beyond the top three or four assets to DeFi tokens and altcoins.

“This represents a gradual shift from the past few years, when investors piled into the top three or four assets,” the report said, adding that the increased use of DeFi tokens and altcoins will likely solidify their role in institutional portfolios.

The survey also revealed that 75% of fund managers want the ability to stake and earn yield directly from their crypto assets.

Ethereum’s $105 billion staking market is a prime example of how institutions can engage with yield-generating opportunities. Beyond native staking, liquid staking and re-staking provide institutional players with additional ways to maximize returns.

*This is not investment advice.