Institutions Ride Out Crypto Downturn, Boost Allocations

Bitwise Investments has released its first Institutional Crypto Adoption Report, offering insights into how large investment institutions are allocating to digital assets. The report found that none of the interviewed institutions reduced their crypto holdings during a roughly 50% market drawdown between Q4 2025 and Q2 2026.

In fact, several chose to increase their allocations, signaling a commitment to their long-term investment theses. Bitcoin remains the centerpiece of institutional portfolios, with every respondent reporting holding it as their first and largest crypto position.

Interestingly, many have begun pairing Bitcoin with gold as a hedge against macroeconomic uncertainty. Allocations across the surveyed institutions ranged from 0.5% to 13% of investable assets, though the majority clustered in the 1-2% range.