Bitwise Survey: Institutions Stick With Crypto Through 50% Market Rout, Keeping Allocations At 1%–2%
Institutional investors are maintaining their crypto allocations despite a severe market downturn, according to a new report from Bitwise Asset Management. The firm interviewed senior investment professionals at 15 institutions — including endowments, pension funds, sovereign wealth funds, multi-family offices, investment consultants and public companies — between late March and April 2026. The findings indicate that crypto exposure among large allocators remains concentrated in small position sizes, typically between 1% and 2% of investable assets, though allocations across the group ranged from 0.5% to as high as 13%.
Notably, none of the 15 institutions reduced their crypto exposure during the market decline of roughly 50% between October 2025 and April 2026, and several actively increased their positions during the sell-off. According to Bitwise, this resilience challenges the common assumption that institutions act as weak hands in a crypto drawdown. Instead, the report suggests that selling pressure during downturns comes primarily from retail investors, forced sellers and traders unwinding short-term strategies, while institutional allocators tend to buy on the other side.
Bitcoin emerged as the universal institutional conviction asset: every crypto-owning institution interviewed held it, and for most it was their first, largest and longest-held position. Respondents generally framed Bitcoin as a store of value, frequently paired with gold as a hedge against fiat currency debasement. By contrast, Ethereum and Solana were held more selectively as venture-style technology bets, typically with smaller positions, shorter horizons and explicit exit conditions tied to real-world adoption and value accrual.
ETFs and Governance Shape the Next Phase of Adoption
Access infrastructure is shifting rapidly. Nearly all respondents either already use or plan to use spot crypto ETFs, citing lower all-in costs, reduced operational burden and the ability to treat crypto like any other portfolio position from a back-office perspective. Institutions still holding private placement vehicles are actively evaluating ETFs for their liquidity and rebalancing flexibility. Bitwise noted that because some institutions deliberately choose vehicles that avoid public disclosure requirements, estimates of institutional crypto ownership derived from regulatory filings should be regarded as a floor rather than a complete picture.
The report identifies governance, operational and reputational concerns — rather than doubts about investment merit — as the primary obstacles to larger allocations. Institutions continue to grapple with how to categorize crypto within existing investment policy frameworks, navigate board and committee approval processes and manage headline risk. These barriers are gradually easing as spot ETFs proliferate, regulation improves and peer disclosure grows.
Looking ahead, Bitwise argues that institutional adoption follows a reflexive dynamic: each credible public allocation lowers the reputational cost for the next institution, making the growth path more likely to be exponential than linear. The firm expects the majority of institutional investors to hold crypto within the next five years, while cautioning that a major industry crisis or a failure of crypto applications to translate adoption into token value could slow momentum.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
