Institutional Investors Buck Drawdown, Hold Crypto Allocations

Institutional investors are increasingly embracing cryptocurrencies, according to a recent report by Bitwise Investments. The firm interviewed senior investment professionals at 15 of the world's largest institutions and found that none reduced their allocation through the roughly 50% drawdown between Q4 2025 and Q2 2026.

Several institutions even bought more crypto during this period. Bitcoin is the most widely held cryptocurrency, with nearly all institutions holding it as their first, largest, and longest-held position. It's increasingly paired with gold.

The allocations ranged from 0.5% to 13% of investable assets, with most falling between 1% and 2%. Ethereum and Solana are also held, but in smaller positions and on shorter horizons.

Not a single investor cited price as a reason for selling their crypto holdings. Instead, they mentioned thesis failure, regulatory reversal, or an industry-wide credibility crisis as potential triggers to sell.