Institutions Held Crypto Through 50% Drawdown, Bitwise Finds

Bitwise’s Institutional Crypto Adoption Report, based on interviews conducted in late March and April 2026, reveals that none of the 15 institutions surveyed reduced their crypto allocations during a market decline of roughly 50% that began in October 2025. Several institutions even increased their exposure.

Bitcoin Remains the Core Holding

All institutions that owned crypto held Bitcoin (BTC), typically as their largest and longest‑held position. Most described BTC as a store of value, often compared to gold, and used spot crypto exchange‑traded funds (ETFs) or planned to shift to them from private placements or direct custody.

Smaller Positions in Ether and Solana

Ether (ETH) and Solana (SOL) were held in smaller amounts with shorter investment horizons. Institutions indicated they would consider exiting these assets if network usage growth—such as in stablecoins, decentralized finance, or tokenization—did not translate into value for the tokens.

Reasons for Potential Sale

When asked what could trigger a sale, none cited price declines. Instead, respondents mentioned possible regulatory reversals, an industry‑wide credibility crisis, or a failure of their original investment thesis.

Allocation Sizes and Trends

• Crypto allocations among respondents ranged from 0.5% to 13% of investable assets, with most between 1% and 2%.
• Spot Bitcoin ETF exposure among professional investors fell 17% in Q1 2026, driven mainly by hedge funds and brokerages, while banks added exposure.