Institutions Hold Bitcoin Through 50% Market Decline

Between October 2025 and April 2026 Bitcoin’s price fell roughly 50%. Bitwise, a crypto fund manager with over $9 billion in client assets, interviewed 15 large investors—including university endowments, pension funds, state‑owned investment funds, family offices and public companies—to understand their response.

Why Institutions Stayed Put

All respondents held Bitcoin and none cited the price drop as a reason to sell. They said they would consider exiting only if the fundamental case for crypto collapsed, such as a major regulatory reversal or an industry‑wide scandal. Several investors added to their positions during the decline.

Investment Thesis and Allocation

Bitcoin is viewed primarily as a store of value, often compared to gold. Positions were modest, ranging from 0.5% to 13% of investable assets, with most allocations between 1% and 2%. The institutions largely rely on spot Bitcoin exchange‑traded funds (ETFs) that hold the coin directly.

Selective Exposure to Other Tokens

Ethereum and Solana were held more cautiously, treated as technology bets that could lose value if real‑world adoption does not materialise within a few years.

Public Filings Insight

Public filings show mixed behavior among large holders. Harvard’s endowment reduced its Bitcoin ETF stake by 43% in Q1 2026, while Abu Dhabi’s two state funds retained all their holdings through the same period. Bitwise notes that such filings may understate true institutional exposure because some investors use undisclosed vehicles.

Outlook

With Bitcoin trading near $84,534 at the time of reporting, Bitwise expects most institutions to maintain crypto exposure for at least the next five years.