Institutions Hold Firm on Crypto Despite 50% Market Decline

A recent report from Bitwise reveals that institutional investors remained committed to cryptocurrencies despite a 50% market decline in October 2025. The study surveyed 15 asset owners, who reported that none reduced their crypto allocations during this period, and some even increased their exposure.

Bitcoin (BTC) emerged as the default core holding for these institutions, with every respondent owning BTC, often as their largest and longest-held position. BTC was frequently compared to gold as a store of value.

In contrast, Ether (ETH) and Solana (SOL) were held with more scrutiny, with respondents viewing them as conditional and shorter-horizon bets. Institutions emphasized the importance of token value accrual, meaning that growth in network activity must translate into benefits for token holders to maintain their positions.

The report also highlights the growing trend of institutional investors using spot crypto exchange-traded funds (ETFs) to manage their exposure, with nearly every institution in the sample either using ETFs or planning to do so. This shift is driven by reduced operational complexity and alignment with established portfolio management workflows.