The asset management industry, worth $100 trillion, is facing significant challenges as investors shift towards cheaper and passive investment strategies. This trend is causing a massive outflow of funds, with an estimated $600 billion expected to be withdrawn from these firms. Notably, established asset managers like T. Rowe Price, Franklin Resources, Abrdn, Janus Henderson Group Plc, and Invesco Ltd. have been unable to attract new investors since 2018, resulting in continuous outflows and a decline in their stock prices. Despite attempts to cut fees and pursue mergers, these firms have struggled to shore up revenue. To mitigate the impact of the market downturn, many of these asset managers have sought exposure in the crypto sector. For example, Abrdn acquired a stake in a London-based digital securities exchange and tokenized a money market fund using distributed ledger technology. Franklin Resources has filed for a Bitcoin ETF, backed by Bitcoin held by Coinbase Custody Trust Company. T. Rowe Price has explored the potential of cryptocurrencies to transform capital markets and has speculated on exposing select portfolios to crypto assets. Invesco, with $1.4 trillion in assets under management, has reapplied for a spot Bitcoin ETF.If these asset management firms fail, their exposure to digital assets could have a negative impact on the crypto sector, particularly on Bitcoin. However, if the firms are able to change their business models or attract new investors, they may be able to avoid a sudden meltdown. It is important to note that Bitcoin is the most prominent crypto asset and would likely be the most affected if these asset managers were to fail.