Institutions held crypto through 50% drawdown, Bitwise finds

None of the 15 institutions surveyed by asset manager Bitwise reduced their cryptocurrency holdings during a significant market downturn, indicating that institutions held crypto allocations steady through a roughly 50% market decline. Several institutions, in fact, increased their crypto exposure.

The “Institutional Crypto Adoption Report” by Bitwise, based on interviews conducted in late March and April 2026 amid a market decline, included investment professionals from endowments, foundations, public pensions, sovereign wealth funds, multi-family offices, investment consultants, and public companies.

Bitcoin (BTC) was a universal holding among institutions with crypto exposure, typically representing their largest and longest-held position. Ether (ETH) and Solana (SOL) were generally smaller investments with shorter time horizons and specific conditions for potential sale.

When asked about triggers for selling, institutions did not cite falling prices. Instead, they indicated that a regulatory reversal, an industry-wide credibility crisis, or a failure of their investment thesis would prompt a sale. Some noted they would sell Ether or Solana if network growth did not translate into token benefits.

Institutions held crypto with high conviction, particularly regarding Bitcoin, often treating it as a store of value alongside gold. Conviction for ETH and SOL was less consistent, with several institutions indicating they might exit these positions if growth in areas like stablecoins, decentralized finance, and tokenization did not lead to value accrual for the assets themselves.

Crypto allocations among these institutions ranged from 0.5% to 13% of their investable assets, with most falling between 1% and 2%. Bitwise reported that nearly all institutions interviewed either utilized spot crypto exchange-traded funds (ETFs) or intended to, with some transitioning from private placements or direct custody to ETFs.

This contrasts with a June report from CoinShares, which found that professional investors' reported US spot Bitcoin ETF exposure decreased by 17% in the first quarter. This reduction was primarily due to hedge funds and brokerages, while banks increased their exposure.