Institutions Treat Bitcoin Like Gold: No Sales During Bear Market

Bitwise's Head of Research, Ryan Rasmussen, revealed that during the recent bear market, no major institutions sold their Bitcoin holdings. The price of Bitcoin fell from $125K to $60K, but Bitwise interviewed 15 top institutions and found that they actually increased their Bitcoin investments.

Rasmussen explained that these institutions treat Bitcoin as a hedge against debasement, similar to gold. This means they see it as a safe haven asset during times of economic uncertainty. Bitwise's report highlights the growing trend of institutional investors allocating a portion of their portfolios to Bitcoin.

The report also mentions that some institutions, such as Wells Fargo, have allocated 2-3% of their portfolio to Bitcoin. Additionally, Fidelity and BlackRock have invested between 2-8% in Bitcoin. The report notes that these allocations are relatively small but significant given the size of these institutions.

Rasmussen also attributed the shallowness of the recent bear market to the growing popularity of Bitcoin ETFs. These funds allow investors to buy a portion of the Bitcoin market without directly holding the cryptocurrency, making it more accessible to institutional investors.