Crypto Allocations Hit 1.8% Yearly High as Bitcoin Dominance Grows

Investors have increased their allocations to cryptocurrencies to a yearly high of 1.8% as of April 29, according to a recent report. This surge is attributed to recent price movements and improving sentiment in the crypto market. The report, which is based on survey data and supporting 13F filings, provides a snapshot of how institutions, individuals, and wealth managers across various asset classes are positioning themselves in the crypto space.

Institutional portfolios, in particular, have shown an average crypto allocation of 2.5%, indicating a significant shift towards greater on-chain exposure. While individual investors still hold the highest absolute weighting in crypto, there is a growing commitment among institutions and family offices to increase their crypto holdings.

Bitcoin continues to dominate crypto allocations, with 63% of survey respondents confirming exposure, up from 48% in January. Ethereum remains in second place with nearly 20%, while Solana follows with 17%. Other altcoins, including Polkadot, Cardano, and XRP, have little to no presence in investor portfolios, suggesting a move away from broader diversification within crypto holdings. This narrowing focus on Bitcoin coincides with investors reassessing altcoin risk and increased comfort with Bitcoin’s relative liquidity, infrastructure, and perceived regulatory clarity.

Despite Ethereum’s continued relevance and growing interest in alternatives outside the top two digital assets, the trend towards Bitcoin remains strong. Respondents primarily cited diversification as the leading reason for including crypto in their portfolios, followed by interest in distributed ledger technology and speculative motives. While client demand has dropped compared to the previous quarter, speculative interest has increased, suggesting a reevaluation of crypto’s role in multi-asset portfolios.

Volatility remains the primary barrier to new crypto investments, even as Bitcoin has recently exhibited lower volatility than equities. The persistence of this concern highlights a mismatch between investor perception and the asset’s observed performance during recent market disruptions. Volatility was also the primary ongoing concern among respondents already allocated to crypto. Regulatory uncertainty remains the second-most reported barrier to entry, consistent with previous surveys. Investors also reported concerns over reputational risk and weak fundamentals, but to a lesser degree.

According to the report, expectations that regulatory and political risks would decline following executive orders issued earlier in the year have yet to materialize. Meanwhile, previously cited risks, such as quantum computing, have diminished in relevance. The report also showed a broader macroeconomic backdrop informing investor sentiment. Despite potential headwinds from tariff-related economic fallout and fears of stagflation, a growing number of respondents view the Federal Reserve’s current policy direction as appropriate, though a substantial portion remains undecided.