Institutions Ride Out 50% Crypto Crash Without Selling
Institutions showed remarkable resilience during the roughly 50% market drawdown of October 2025 to March 2026, refusing to cut their crypto exposure. According to a report by Bitwise, none of the 15 institutions interviewed reduced their allocations during this period, while several even increased their positions.
The report found that Bitcoin was the only crypto asset held by every institution in the survey, with most institutional allocations ranging between 1% and 2% of investable assets. Several investors viewed Bitcoin primarily as a store of value, considering it alongside gold within broader portfolio strategies.
Some institutions did experience previous market declines exceeding 50%, but this latest downturn did not necessarily change their longer-term allocation strategies. The report highlighted growing institutional use of spot crypto exchange-traded funds (ETFs), with almost every interviewed institution either using these products or planning to do so.