Institutions Refused to Sell Crypto During 50% Crash, Bitwise Report Finds

• None of 15 institutions cut crypto exposure during the roughly 50% market drawdown.
• Bitcoin remained the only crypto asset held by every institution in the survey.
• Most institutional crypto allocations ranged between 1% and 2% of investable assets.

Bitwise’s first Institutional Crypto Adoption Report found that none of 15 interviewed institutions reduced crypto exposure during a roughly 50% market drawdown. Several investors instead increased their positions, highlighting how institutional strategies remained focused on longer-term convictions rather than short-term price movements.

Institutions Held Through the Crypto Market Drawdown

According to the report, Bitwise interviewed 15 senior investment professionals overseeing crypto allocations at major institutions, including endowments, foundations, public pensions, sovereign wealth funds, multi-family offices, investment consultants, and public companies. 

The interviews took place between late March and April 2026, during a market decline that began in October 2025. None of the interviewed institutions reduced their crypto allocation during the drawdown, while several bought additional assets.

However, the findings apply only to the 15 institutions interviewed. Bitwise did not identify the participants, meaning the results do not represent the entire institutional investment market.

Notably, falling prices were not cited as a reason for selling crypto. Instead, respondents identified thesis failure, regulatory reversals, or an industry-wide credibility crisis as potential exit triggers.

INSIGHT: Bitwise released its first Institutional Crypto Adoption Report, and the findings are bullish. 🤯

✅ 0 institutions cut crypto exposure during the ~50% drawdown
✅ Every crypto-holding institution owns Bitcoin
✅ Most allocations are around 1%-2%
✅ Several bought more… pic.twitter.com/wFljhY8XqR

— CryptosRus (@CryptosR_Us) September 24, 2026

Some investors had already experienced previous market declines exceeding 50%. Therefore, the latest downturn did not necessarily change their longer-term allocation strategies.

Bitcoin Remains the Core Institutional Crypto Asset

Bitcoin emerged as the common asset among every crypto-owning institution included in the report. For nearly all respondents, BTC represented their first, largest, and longest-held digital asset.

Several investors viewed Bitcoin primarily as a store of value. Some also considered BTC alongside gold within broader portfolio strategies.

Institutional allocations varied considerably across the sample. Crypto exposure ranged from 0.5% to 13% of investable assets, although most allocations remained between 1% and 2%.

Family offices reported some of the largest allocations, while sovereign wealth funds generally maintained smaller positions. The differences reflected varying approval processes, governance structures, and institutional constraints.

Ethereum and Solana received less consistent institutional conviction. Investors generally held smaller positions in ETH and SOL and applied shorter investment horizons.

Some institutions said they could sell either asset if network activity failed to generate sufficient value for the underlying token. Stablecoins, decentralized finance, and tokenization were among the areas monitored by investors.

Spot Crypto ETFs Gain Institutional Traction

The report also highlighted growing institutional use of spot crypto exchange-traded funds. Almost every interviewed institution either used these products or planned to use them.

Some investors shifted from private placements or direct custody toward ETFs. Lower costs, simpler operations, and easier portfolio administration were among the factors supporting that transition.

Still, direct custody remained relevant for some institutions. Governance requirements and internal policies influenced how investors accessed digital assets.

Bitwise also noted that public filings may underestimate institutional crypto ownership. Certain holdings remain outside standard disclosure frameworks, while direct ownership and private investment vehicles may not appear in reported securities positions.

Overall, the findings show that institutional crypto strategies increasingly focus on allocation discipline, governance, and long-term investment theses rather than short-term price movements.