Institutions Hold Firm on Crypto Allocations Despite Market Volatility
Institutional investors largely maintained their crypto exposure during the recent market downturn, according to a new study from Bitwise Asset Management.
The study interviewed senior investment professionals at 15 large institutions and found that none reduced its allocation during the roughly 50% crypto market drawdown between Q4 2025 and Q2 2026. In fact, several institutions increased their exposure.
Bitcoin emerged as a common asset across institutional portfolios, with every institution in the study holding it. For nearly all of them, Bitcoin 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. In contrast, Ethereum and Solana were treated differently, with institutions holding smaller positions and shorter investment horizons.