Sovereign Fund Sells Gold to Buy Bitcoin Amid Institutional Adoption

A recent report from Bitwise Asset Management reveals that at least one sovereign wealth fund has been selling gold reserves to buy Bitcoin. The finding is based on interviews with senior investment professionals across 15 large institutions conducted between March and April of this year.

The report highlights a striking conclusion: during a roughly 50% drawdown in the price of Bitcoin, from approximately $125K in Q4 2025 to around $60K in Q2 2026, not a single institution surveyed reported reducing its Bitcoin holdings. In fact, every institution holding crypto assets in the survey held Bitcoin as its first, largest, and longest-held position.

Crypto allocations across the surveyed institutions ranged from 0.5% to 13% of total investable assets. Most opted for a more restrained 1-2% allocation, with sovereign wealth funds sitting at the lower end of that spectrum due to multi-layered governance frameworks. However, one sovereign fund did sell gold to buy Bitcoin, treating it as a hedge against fiat currency debasement.