Institutions Ride Out Crypto Market Selloff Without Flinching
Despite a roughly 50% market drawdown that began in October 2025, institutions held onto their crypto allocations, according to asset manager Bitwise's Institutional Crypto Adoption Report. In fact, none of the 15 institutions interviewed cut their crypto holdings during this period, while several even increased them.
The report drew on interviews conducted with investment professionals at endowments, foundations, public pensions, sovereign wealth funds, multi-family offices, investment consultants and public companies in late March and April. When asked what could prompt them to sell, none of the institutions cited falling prices as a reason.
Instead, respondents pointed to potential regulatory reversals, industry-wide credibility crises, or failures of their investment thesis as reasons for selling. For Bitcoin ($BTC), which was held by almost all the institutions interviewed, several said they would sell if growth in network use failed to benefit the token.