Institutions Ride Out Crypto Downturn, Hold Steady on BTC Allocations

Bitwise Asset Management recently conducted interviews with 15 institutions to gauge their crypto investment strategies during a significant market downturn. The interviews, which took place in late March and April, found that none of these institutions reduced their cryptocurrency allocations, even as prices fell by roughly 50%.

In fact, several institutions increased their holdings during this period. Every institution in the group held Bitcoin (BTC), often as its largest and longest-held position, while Ether (ETH) and Solana (SOL) were smaller bets with shorter investment horizons. When asked what would prompt them to sell, none of the institutions cited falling prices.

Instead, they mentioned potential regulatory reversals, industry-wide credibility crises, or a failure of their investment thesis as reasons for selling. Some also noted that if growth in network use failed to benefit the underlying tokens, they might exit their positions in Ether and Solana.