Fund Managers Favor Small Crypto Stakes; Strategy May Sell BTC

A CoinShares Research quarterly survey published May 6 found that 63% of institutional allocations to digital assets are driven by diversification and client demand. The poll covered 26 fund managers overseeing a combined $1.3 trillion in assets under management.

The survey showed the median portfolio allocation to crypto remained at 1%, while the weighted average allocation was 0.1%, a figure reduced by the largest respondents. Applied across the surveyed AUM, a 1% median implies roughly $13 billion in baseline crypto exposure among the group. Respondents cited Bitcoin and Ether as 58% of the digital assets in their portfolios.

James Butterfill, head of research at CoinShares, said that two years ago speculation was the main reason managers held digital assets; the survey found that reason now accounts for 15% of allocations. Interest shifted away from older alternative coins such as Cardano and Polkadot and toward tokens linked to decentralized finance, including Aave, Sui and Tron. The report identified internal compliance restrictions as the top barrier to increasing crypto allocations, ahead of regulatory uncertainty.

A separate industry survey of financial advisors indicated most advisors with crypto exposure planned to maintain or increase allocations in 2026, with many holding more than 2% of client portfolios. CFRA Research reported that Coinbase’s assets under custody rose to $516 billion, a 95% year-over-year increase, driven in part by stablecoins and crypto derivatives.

On Strategy’s Q1 2026 earnings call on May 5, CEO Michael Saylor said, “We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it.” The company holds 818,334 BTC. Strategy reported a $12.54 billion net loss for Q1 2026, driven largely by a $14.46 billion unrealized markdown on its bitcoin holdings. Company filings show annual dividend obligations of $1.5 billion and roughly 18 months of cash coverage.

The CoinShares survey describes smaller, diversified crypto positions among fund managers, while Strategy retains a concentrated, leveraged bitcoin position on its balance sheet. The weighted average allocation’s low figure reflects caution among the largest managers, even as median positions indicate baseline exposure among smaller and mid-sized funds.

Background: Institutional interest in digital assets has grown with expanded custody services, more developed derivatives markets and increased stablecoin activity. The survey and company filings provide data on how different institutional approaches are being applied and how firms are managing allocation size, asset selection and balance-sheet pressures.