Investor portfolio allocations to crypto have reached a yearly high of 1.8% as of April 29, according to a recent report published by CoinShares. 

The report attributed the increase to recent price movements and improving sentiment in the crypto market. Its findings are based on survey data and supporting 13F filings, offering a position snapshot of how institutions, individuals, and wealth managers across asset classes.

Institutional portfolios, in particular, showed an average crypto allocation of 2.5%, reflecting a marked shift toward greater on-chain exposure. 

While individual investors maintain the highest absolute weighting in crypto, the report highlights a growing commitment among institutions and family offices.

Bitcoin dominates allocations

Bitcoin (BTC) continues to lead among crypto holdings, with 63% of survey respondents confirming exposure, up from 48% in January. Ethereum (ETH) remains in second place with nearly 20%, while Solana (SOL) follows with 17%. 

Other altcoins, including Polkadot (DOT), Cardano (ADA), and XRP, registered little to no presence in investor portfolios, suggesting a move away from broader diversification within crypto holdings.

The narrowing focus on Bitcoin coincides with investors reassessing altcoin risk and increased comfort with Bitcoin’s relative liquidity, infrastructure, and perceived regulatory clarity. 

This trend is evident despite Ethereum’s continued relevance and growing interest in alternatives outside the top two digital assets.

Respondents primarily cited diversification (30%) as the leading reason for including crypto, 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 and regulation remain top concerns

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. 

Meanwhile, 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.

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