Institutions Stand Firm on Crypto Holdings Despite 50% Market Decline

Institutional investors held onto their crypto allocations even as prices plummeted by around 50% in late October 2025, according to a report from asset manager Bitwise.

The firm interviewed 15 institutions, including endowments, foundations, public pensions, and sovereign wealth funds, between March and April of this year. None of the respondents said they would sell their crypto due to falling prices, but rather cited potential regulatory reversals, industry-wide credibility crises, or failures in their investment thesis as reasons for exiting.

For most institutions with exposure to Bitcoin (BTC), it was their largest and longest-held position, often alongside gold. However, conviction around Ether (ETH) and Solana (SOL) was less consistent, with several investors stating they could exit these assets over the next few years if growth in areas such as stablecoins, decentralized finance, and tokenization failed to translate into value for the underlying tokens.

The report found that almost every institution used spot crypto exchange-traded funds or planned to use them. Some investors shifted from private placements or direct custody toward ETFs.