Bitwise report: Institutions kept crypto through 50% sell-off

Bitwise Asset Management published a report titled Institutional Crypto Adoption based on interviews with the senior investment professionals responsible for crypto allocations at 15 large institutions. The sample included endowments, foundations, public pension funds, sovereign wealth funds, multi-family offices, investment consultants and public companies. Bitwise said institutions often do not disclose crypto positions, so the firm asked directly about holdings, allocation sizes and exit triggers.

The report covers activity during a market decline of roughly 50% that ran from Q4 2025 to Q2 2026. Bitwise reports that none of the institutions in the study reduced their crypto allocations during that period and several increased their holdings. When asked what would prompt them to exit, no interviewees named price declines.

Every institution in the sample that reported any crypto exposure also reported holding bitcoin. For most, bitcoin was the first, largest and longest-held crypto position and was described as a store of value often referenced alongside gold as a hedge against fiat debasement. By contrast, ethereum and solana were held as smaller, thesis-dependent positions with shorter time horizons and explicit exit conditions tied to token adoption and utility.

Reported allocation sizes ranged from 0.5% to 13% of investable assets, with most clustering between 1% and 2%. Institutions commonly spread exposure across spot exchange-traded funds, direct token ownership, venture capital and hedge funds. Almost every institution interviewed either uses spot ETFs or plans to, citing lower all-in costs, reduced operational and custody burdens, and simpler integration with back-office systems.

Bitwise also notes that some institutions use investment vehicles that avoid 13F disclosure requirements, so estimates of institutional crypto ownership based on 13F filings understate total exposure.

Matt Hougan, Bitwise’s Chief Investment Officer, wrote: “Institutional investors are embracing crypto as an important component of their portfolios. The adoption is happening faster and more durably than the general public may realise.” Ryan Rasmussen, Head of Research at Bitwise, added: “Institutions with different mandates and constraints have arrived at a strikingly similar view: bitcoin as the anchor, often held alongside gold, while other tokens earn selective exposure.”

The report concludes that current patterns-small but growing allocations, preference for spot ETFs, widespread bitcoin ownership and selective bets on other tokens-support Bitwise’s view that most institutional investors will hold crypto within five years.