According to a CoinShares poll of prominent asset managers, Bitcoin has the most compelling growth outlook among cryptocurrencies, but Ether still holds the largest position in their portfolios. However, the U.S. Securities and Exchange Commission's aggressive stance against the sector is weighing heavily on family offices, institutions, and wealth managers, with growing concerns that tighter regulation or an outright ban could pose risks to crypto in the future.

Despite this, BlackRock's filing to launch a Bitcoin exchange-traded fund may have stopped investor sentiment from being rattled further, as $470 million worth of funds flowed back into the market in just three weeks. While there are hints that asset managers are willing to invest in altcoins again, custody concerns and accessibility remain as reasons why institutional investors are reluctant to allocate to digital assets.