BofA survey: fund managers keep crypto allocations near zero despite market growth

BofA survey: fund managers keep crypto allocations near zero despite market growth

A recent survey by Bank of America (BofA) has revealed that fund managers are maintaining their crypto allocations at near-zero levels despite the significant growth in the crypto market. The survey, conducted in August 2025, found that only 1% of fund managers have allocated any capital to cryptocurrencies, with the remaining 99% keeping their allocations at zero .

This trend is puzzling, given that the total crypto market cap has reached $3.95 trillion, according to TradingView, and funding for crypto protocols has shown resilience. While overall funding for crypto protocols was down 30% in August, reaching nearly $2 billion from July’s $2.67 billion, the third-quarter totals reached $4.57 billion, pushing past Q2’s $4.54 billion . This indicates that while monthly flows have cooled, the sector is still attracting substantial capital.

Investor sentiment and priorities have shifted, with funding moving away from new-chain launches toward treasuries and teams building on existing projects. According to market analyst Daan Crypto Trades, new launches are hitting lower valuations, which has helped keep price moves quieter after listings .

The shift in investor focus is also reflected in the sectors attracting funding. DeFi still drew attention in August, with money flowing into infrastructure and trading platforms. Other sectors, such as stablecoin infrastructure and payment solutions, also saw notable rounds. For instance, Rain raised $58 million, and OrangeX took $20 million in a Series B .

In a separate development, South Korea has lifted a long-standing VC funding ban on crypto projects. The Ministry of SMEs and Startups announced the move on September 16, following approval by the State Council and cabinet. The amendment to the Enforcement Decree removes the label that had kept exchanges and brokerages classified as “restricted venture businesses” since October 2018. This decision aims to create a more transparent and responsible ecosystem and help venture capital flow to companies focused on blockchain and cryptography .

Despite these developments, fund managers remain cautious. The BofA survey highlights the need for more education and understanding of cryptocurrencies and their potential risks and rewards. As the crypto market continues to evolve, it will be interesting to see how fund managers adjust their allocations in response to market conditions and regulatory changes.

References
https://www.newsbtc.com/news/crypto-investment-slows-august-funding-sinks-to-2-billion/
https://twitter.com/DaanCrypto/status/1627517399866988544