Institutions Stay Afloat as Crypto Markets Plummet by Half

Bitwise Investments has released its first Institutional Crypto Adoption Report, which found that institutional investors are treating digital assets as a durable satellite position rather than a trade to be abandoned at the first sign of trouble.

The report, compiled from interviews with senior investment professionals at endowments, family offices, public pension funds, and sovereign wealth funds, revealed that none of the 15 major entities interviewed sold their crypto holdings during a drawdown of roughly 50%.

The majority of institutions with crypto exposure hold between 1% and 2% of their portfolios in the asset class, with Bitcoin (BTC) remaining the anchor of institutional crypto portfolios. Every respondent reported holding BTC, with most describing it as their first and largest crypto position.

Allocations across the surveyed institutions ranged from 0.5% to 13%, though the bulk clustered in the 1% to 2% band. This suggests that institutions view digital assets as a complement to core holdings rather than a replacement for them.