Bitwise study finds institutions kept buying crypto through 50% drawdown

Institutional investors largely maintained or increased their crypto exposure through the latest market downturn, according to a new study from Bitwise Asset Management.

Bitwise interviewed senior investment professionals responsible for crypto allocations at 15 large institutions, including pension funds, sovereign wealth funds, endowments, foundations and family offices. 

None reduced its allocation during the roughly 50% crypto market drawdown between Q4 2025 and Q2 2026, while several increased their exposure.

Bitcoin emerged as the common asset across institutional portfolios. Every institution in the study that owned crypto held Bitcoin, which for nearly all was its first, largest and longest held crypto position. 

Investors frequently framed Bitcoin as a store of value and compared it with gold as a hedge against fiat currency debasement.

Ethereum and Solana were treated differently. Institutions holding the assets generally had smaller positions and shorter investment horizons, with some saying they would exit if adoption failed to translate into meaningful value for the underlying tokens over the next several years.

Crypto allocations ranged from 0.5% to 13% of investable assets, although most institutions allocated between 1% and 2%. Exposure was spread across spot ETFs, direct ownership, venture investments and hedge funds.

Spot ETFs have also become a major access point. Nearly every institution interviewed either uses them or plans to, citing lower costs and operational complexity. 

Bitwise said some institutions use structures that do not appear in 13F filings, meaning public filings may understate overall institutional crypto exposure.

Bitwise CIO Matt Hougan said no institution interviewed identified falling prices as a reason it would sell. Instead, participants pointed to factors such as a breakdown in their investment thesis, regulatory reversal or an industry wide credibility crisis.

The study is based on interviews with 15 institutions and does not represent a broad statistical survey of institutional investors. Bitwise said the findings support its expectation that a majority of institutional investors will hold crypto within five years.