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Big Investors Are Giving Up on Crypto Markets Going Mainstream

  • Bitcoin as a portfolio diversifier hasn’t worked for investors
  • Crypto won’t ‘find a home in institutional asset allocation’
Bloomberg business news
FTX Fallout: What Happens to Crypto Space Now?

Institutional investors were souring on cryptocurrencies even before this week. The sudden downfall of Sam Bankman-Fried’s may have permanently damaged their prospects of being included in mainstream portfolios.

While plenty of industry die-hards remain, many professional money managers are saying the case for crypto as a portfolio diversifier or digital gold has been debunked. The losses are too great and the market structure is too risky, they say.