Bitcoin and Ethereum Maintain 50% of Asset Managers' Portfolios Across Market Cycles

Bitcoin and Ethereum have maintained a steady presence in asset managers' portfolios, accounting for around 50% of holdings across various market cycles. This stability is evident in the data compiled by a crypto trading and portfolio-management platform, which shows that during bullish markets, managers tend to allocate a significant portion of their portfolios to these core cryptocurrencies. In January, as Bitcoin approached $73,000 and Ethereum surged post the Pectra upgrade, Bitcoin and Ethereum made up 57% of portfolio holdings. During this period, allocations to other layer-1 tokens like Solana and Avalanche increased to 21%, while stablecoins dipped to 14%, indicating a risk-on stance.

By May, the allocation to Bitcoin and Ethereum remained relatively unchanged at 54%, with layer-1 tokens at 24% and stablecoins at 14%. This suggests that in strong up-markets, managers maintain a steady overweight in core tokens and key smart-contract chains. However, the mood shifted in February when Bitcoin and Ethereum allocations fell to about 47%, and stablecoin holdings nearly doubled to almost 30%. This shift indicates that managers relied on stablecoins like Tether and USD Coin for liquidity and downside protection during market pullbacks. Exposure to high-beta DeFi assets dropped from 8% to 5%, while layer-1 tokens eased to around 20.5%, preserving what the report calls “dry powder” for when markets calm.

When markets moved sideways in March, April, and June, allocations appeared to be relatively balanced. In March, Bitcoin and Ethereum held steady at 50%, stablecoins sat at 24.5%, and DeFi and layer-1 tokens hovered around 5% and 21.5%, respectively. This mix reflects a cautious reentry into yield strategies as volatility cooled. In April, as price action teased new highs, Bitcoin and Ethereum rose to 52%, DeFi inched up to 6%, and layer-1 tokens climbed to 23%. Stablecoins fell to 19%, blending momentum plays with income generation. By June, after a mild sell-off, portfolios had reverted to a structure resembling that of March, with Bitcoin and Ethereum back at 50%, stablecoins at 24.5%, DeFi at 6%, and layer-1 at 20.5%. This return to a more defensive posture suggests managers remained cautious about upside after the earlier rally.

The report emphasizes three consistent themes across all market regimes: core consistency, dynamic dry powder, and selective growth. Bitcoin and Ethereum anchor roughly half of most portfolios, serving as a risk-managed baseline. Stablecoins fluctuate between 14% and 30%, offering tactical liquidity to buy dips or hedge against market downturns. Allocations to DeFi and layer-1 expand in bullish or cooling phases, aimed at harvesting yield or tactical alpha, but get trimmed when markets turn risk-off. These figures are not one-size-fits-all, as the report does not identify specific firms or their performance targets, and it’s unclear how rebalancing frequency or fee structures might affect the results. For everyday investors, it is not a plug-and-play playbook.

Despite the volatility, Bitcoin's share of everyone’s wallets has been climbing, now almost 31%, up from about 25% back in November. This indicates that people continue to come back to BTC as their go-to cryptocurrency. At the same time, XRP has quietly moved into third place among non-stablecoins, nudging out Solana, whose share has dropped by about a third since last fall. Institutions have nearly 40% of their holdings in Bitcoin, compared with about 12% for retail investors, showing how BTC is both a crowd-pleaser for everyday buyers and a macro hedge for the big players.