Why Wall Street’s old guard still won’t touch crypto

Bitcoin and crypto seem to be on the verge of mainstream adoption, with US spot exchange-traded funds (ETFs) shattering inflow records, Goldman Sachs holding more crypto ETF shares issued by BlackRock than any other institution, and corporate treasuries from Strategy to Bitmine embracing digital assets.

However, a recent survey from Bank of America showed three-quarters of global fund managers remain steadfast in their refusal to touch digital assets.

According to Max Gokhman, deputy chief investment officer for Franklin Templeton Investment Solutions, the paradoxical numbers aren’t due to regulatory uncertainty or operational complexity, as those barriers have largely been addressed.

In an interview with CryptoSlate, Gokhman said the skewed numbers stem from fear, misconception, and the industry’s struggle with abandoning deeply held beliefs about what constitutes legitimate investment.

Gokhman spent years watching traditional finance grapple with the digital asset revolution. He noted:

“The biggest reason is it takes a while for an established industry to realize that they’re falling behind. There’s this fear of the unknown that exists.”

The stewardship paradox

Fund managers pride themselves on fiduciary responsibility, but this protective instinct has created a paradox: the desire to safeguard client assets prevents managers from accessing opportunities their clients increasingly demand.

According to Gokhman:

“Part of being a good steward is being aware of what your clients want. Clients from retail to institutional level are more interested in digital assets, but they’re finding that their investment managers are not actually there with solutions.”

The resistance stems from persistent misconceptions. One notion is that it’s all hyper-speculative and lacks value, while the other is that there is a lack of staff with the expertise to create legitimate investment solutions using digital assets.

The memecoin trap

When Gokhman encounters skeptical colleagues, the conversation follows a predictable script. Traditional finance stalwarts mention memecoins as representative of the entire crypto ecosystem, revealing what he called a surface-level understanding.

Just as equity markets span from blue-chip dividends to speculative biotechs, digital assets range from established protocols generating real revenue to purely speculative tokens.

His response has become automatic: 

“Because you invest in equities, does that mean you’re only buying pink…