Institutions Ride Out Crypto Market Volatility
Bitwise Asset Management recently conducted a survey of 15 institutional investors in late March and April, during a market decline that began in October. The survey found that none of these institutions cut their crypto allocations despite a roughly 50% drawdown.
In fact, several institutions increased their holdings. All 15 institutions that held crypto had Bitcoin (BTC) as their largest and longest-held position, often alongside gold for its store-of-value properties.
The survey also found that Ether (ETH) and Solana (SOL) were smaller bets with shorter investment horizons. Several institutions stated they would sell ETH or SOL if growth in network use failed to benefit the tokens.
Bitwise's Institutional Crypto Adoption Report highlights a growing trend of institutional adoption, with almost every institution interviewed using spot crypto exchange-traded funds or planning to do so. This shift towards ETFs is seen as a move away from private placements and direct custody.