Bitcoin has not worked as a portfolio diversifier for investors.

Before this week, institutional investors had lost hope in cryptocurrencies, and the abrupt collapse of Sam Bankman’s FTX Fried’s may have irrevocably damaged their chances of being included in significant portfolios.

Many professional money managers claim that the case for cryptocurrencies as a means of portfolio diversification or “digital gold” has been debunked, even though many cryptocurrency industry veterans are still active in the market.

Cryptocurrency has not found a place in the institutional distribution of assets.

The lack of a place for cryptocurrencies in the institutional distribution of assets became obvious. It was formerly believed that every investor should include this asset class in their strategic asset allocation, but that is no longer the case, according to Honey Redha, portfolio manager at Pinebridge Investments in London.

The recent explosions and scandals have shattered the main claims made by cryptocurrency proponents and all but ruined the idea that Bitcoin can serve as a haven during stormy times.

Investor opinions on cryptocurrencies are currently more subdued, with Bloomberg Intelligence analysts anticipating a return of bitcoin to its $13,000 summer low.