hindsight is always 20/20. IF, only IF, one knew that bitcoin was going to go from pennies to be around $2,000, of course, one would pour all his money into it. But that is a big IF.
I am a VC, and I actually know we have limitations on our funds. VC funds are legally bound by their investment nature and investors' (LPs') mandate and are NOT ALLOWED in buying securities/currencies (including cryptocurrencies). That's the job of trading funds or hedges funds.
Your last point is valid.