Institutions Hold Firm on Crypto Amid 50% Drawdown

Institutional investors have shown remarkable resilience in the face of Bitcoin's 50% drawdown, according to a recent report by Bitwise. The study surveyed 15 major institutional crypto holders and found that not one of them had sold during the bear-market period.

Bitcoin emerged as the most widely held asset among these institutions, with a long-term store-of-value mentality. It was also generally considered the first asset to be bought and held in large positions. Ethereum and Solana were also widely held, but with less conviction.

The surveyed institutions cited regulatory setbacks, industry-wide credibility crises, or the failure of assets like Ethereum and Solana to prove their utility as potential reasons for selling. However, most remain optimistic about the long-term prospects of these assets.

Spot crypto ETFs have become a major access point for institutional investors, with US spot Bitcoin ETFs recording six consecutive trading days of net inflows worth $2.8 billion.